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| So I had mentioned a few days ago a comment I heard and didn't get any feedback so thought I would try again and see what everyones take was...
The pit trader (CME commodity trader who trades in Soybeans) said the "fear" with equities is when the price is collapsing. -- People see they are losing money, and they head for the exists and just want to get out. He said with commodities, the opposite is true. No one fears soybeans going to zero (I mean the farmer does but no buyer fears that)... The fear is soybeans going from $9 to $12 or $15. So a rally during harvest would seem to play into his "fear" analogy. This interview was several years old. So it isn't like it pertains to this year. I just found it interesting. If you were feeding a few million head a hogs and your biggest variable cost is moving up, wouldn't the fear be it goes up another 20,30,40%? So I could see the rally having some legs is kind of what I'm getting at. What is everyone elses take?? | |
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CME Trader Comment
