Canaries in the Commodities Coal Mine
This is a little inter day comment as some interesting things are triggering in the commodity area. Old time grain traders always watch oats. Why oats, probably because it is ignored horse feed and doesn’t have big players messing with it. Any way, oats is taking out a significant low to the downside today. That is not a good omen for the other grain markets and may mean that we will revise our annual price projection ranges to lower levels.
Also natural gas futures, symbol NG is taking out a triple bottom, not a good sign if you are bullish on energy. Crude oil traders remain in la-la land waiting for Iran to attack someone, but in any case oil is not holding its rally today.