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ShelladyOptions
Senior Contributor

OptionEye - Macro Outlook - Sept. 12th

Well, that wasn't very much fun was it. 

 

Corn barely bouncing back overnight, up 1, beans up 3 and wheat still bleeding, down 3. 

 

Pod and ear/kernel counts/weights was the story on the floor yesterday. 

 

In the bigger picture, commodities could be the canary in the coal mine signaling deflation - not inflation dead ahead. This just might change the debate about interest rates. 

 

The 10 year yield doesn't hear it though and is up to 2.57%. That is a good breakout. 

 

Gold lower again to $1237.95 down $2.98 and oil is up .15 cents to $92.98. 

 

Stocks are slightly lower. 

 

The dollar is basically unchanged but still strong at 84.28 down .01. 

 

Today we get retail sales and the import price index. 

 

And finally, snow in South Dakota??

 

 

 

 

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highyields
Senior Contributor

Re: OptionEye - Macro Outlook - Sept. 12th

Interest rates well go up simply because nothing goes from record lows to record lows.  in 1999  if I would have told you in 9 years we would be talking about $8 corn would you have believed me??   If interest rates do what commodities did we will have 9-10% 10 year notes in 10 years,,,,,,,,,,

 

That is if "they" the force at work, allow the markets to move like they are suppose to....

 

Deflation in the commodity markets should be good for my urban counter parts.  Should make raw materials cheaper,,,,,,,in theory,,,,

 

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