Have Soybeans Broken Free From Crude Oil?
It certainly seems so looking at the chart above, which shows crude losing more than 28% in the last three months whilst beans have risen 12%. Seemingly inextricably linked for most of 2008, this trend has been going on since October. Let's see if breaking free of the shackles of crude is a sign that grains and oilseeds will be the commodities to lead us out of this recession.
The main thing that concerns me about this is that there seem to be too many other people thinking, or is it hoping, along the same lines. I'd feel much more comfortable being a lone voice in the wilderness somehow.
Still, freight rates are moving up, export business is being done. The way I see it is that right now any export business is good export business, no matter who gets the order.
If anything god has come out of this whole mess, it might just be that some of the hot-shot whizz-kids in the city that have only just started shaving have now actually witnessed their first real bear market. Maybe they will be a bit more cautious next time, or is that just wishful thinking?
Blimey, I'm starting to sound like my Dad now. Of course I remember when all this was fields. A hoop & a stick that's all we had in my day, we had to make out own amusement etc.