Wednesday, January 28, 2009

Wednesday Commodities Round-Up

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Simply note that lumber -- a key commodity for housing -- is at multi-year lows. This does not bode well for the future.


Notice the following on corn's chart:

-- After peaking last summer, prices have come down almost 50%.

-- Prices are now in the range of the 2007 prices (which composed a bull market pennant pattern)

-- Prices fell to 2007 lows but used these levels as technical support for a move higher

-- Prices are now above the 10 week SMA

-- The 20 and 50 week SMAs are both moving lower and will probably provide upward resistance.



Notice the following on soybeans:

-- Prices spiked earlier this year but have since fallen almost 50%.

-- Prices have fallen through technical levels established in 2004 and have rallied from levels established in 1996/1997

-- Prices are below the 10 and 20 week SMA, but are above the 50 week SMA

-- The 10 week SMA is still above the other two SMAs, but the 10 week SMA is also falling lower