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Advisor

Good for commodities?

 will this be good for commodities?  http://money.cnn.com/2016/01/12/investing/stocks-lose-1-trillion-2016/index.html

 

Or will EVERYTHING go south?

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6 Replies
Advisor

Re: Good for commodities?

I don't think there's much bullish about draining any liquidity from the swamp.

 

The bullish case for commdoties would be, I guess, should there be a sharp policy response.

 

Ain't going to happen here and China said yesterday they aren't either, whether that's true or not.

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Advisor

Re: Good for commodities?

Saw soemwhere an estimate that it would take $5.7T to fill China's output gap.

 

I think I can do abuot $55K on my credit cards. Anybody else want to chip in?

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Veteran Advisor

Re: Good for commodities?

Morgan Stanley said that crude oil mainly due to the supply/demand imbalances is headed for $20 a barrel.  That type of perception and  expectations would cause all commodities to lower a bit.  

 

From the grain perspective, from todays report 3 million winter wheat acres did not get planted so that means those acres should shift to CORN and Beans.  More corn and bean production means more corn and beans. Smiley Happy

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Honored Advisor

Re: Good for commodities?

And........lower prices for corn & beans means more acres of pasture, hay, & CRP.

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Veteran Advisor

Re: Good for commodities?

And, the problem with other potential alternative crops is locating a profitable market and being able to deliver to it.

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Frequent Contributor

Re: Good for commodities?

My guess is that most of that 3 million acres is in SRW double crop areas.. Net influence on corn/soy is almost nil.

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