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BOTTOM LINE: Despite the recent rise in oil to a new record high, the S&P GSCI Ag Spot Index continues to diverge and has reversed today to session lows, falling another 1.3%. This basket of agricultural commodity prices has plunged 18.9% since its peak on March 12th. This index, which trades very poorly, looks poised to test its 200-day moving average over the coming weeks. Moreover, this bodes very well for a further deceleration in inflation gauges over the coming months.
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