Morning Musings

Posted by Nogger - a legend in his own mind at 09:37 | Categorized as

06/05/11 -- Having fallen around USD10/barrel yesterday crude oil is already down in excess of USD4/barrel this morning as spec money scrambles to get out of commodities. Copper, gold and silver are all lower too, particularly silver which has taken a right royal pasting in the past few days falling 27% since April 29th including this morning's declines.

In fact if you fancy taking a little look at what's happened on commodities since last Friday Reuters have thoughtfully created this little graphic for us here. Bear in mid though that these numbers are based on last night's closes, there's a few extra percent to add onto most of those already this morning.

So then, what's going on, don't these guys know that there are bullish stories aplenty in the ag sector? Well, yes of course they do, they just don't care. They didn't care about the turmoil and angst that they were creating on the way up either. Tarquin's Mummy wants him in for tea, so he's got to go.

There are also one or two bearish stories out there too, it's just that they've largely been getting ignored as the headline writers reach for their Big Book Of Superlatives.

"China Helps Keep US Corn Market All Bulled Up" - they buy a million tonnes, so what? "China buys 1/50th of US annual corn exports - less than what Israel usual import" hardly carries the same weight does it?