We are seeing the burst up in prices caused by investors hoping for a price floor and looking to make a quick buck. I think the market is getting jittery regarding whether or not the price of WTI will hold near $40? US inventory data from Wednesday showed an increase in crude stocks of 3.9 million barrels, another new high. Prices will not hold until those inventories start to decline.
It's currently a game by "smart money" investors related to "when to take profits"? Ride the quick wave up, take your profits, then wait for the next opportunity to jump in.
Finally, here's a good piece on the debt issues in the commodity sector, focused on mining and energy. Still no news from the farming sector....yet....
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