What stood out to me at the end of August?
- Both Grains and Softs, two sectors filled with weather derivative markets, continued to show long-term uptrends.
- Despite continued volatility, Energies were generally showing uptrends as well.
- Fund buying in commodities, the exceptions being Livestock and Metals, indicate inflation remains a problem…
- One that will likely lead to an interest rate hike, as indicated by the Fed fund futures forward curve.
- Theoretically, this could pull more money out of Equities and into Commodities over the coming months.
