This is so he can say with a straight face, commodity prices are easing, oil has not caused a recession, blah blah blah. Just dont drive or eat, and you to can avoid the pressure of inflation.
Lol, I dont know what these guys are all doing, but..........its fun to watch Im enjoying all the slightly unusual things happening right now, thats usually a sign for me to do some research.
The government controls the levers that run the markets. They micro manage the whole economy. This is in no way a free capital market, it's about as free as China.
That is a bold statement my friend. I disagree with you but if you think that is what controls the Ag markets then go for it. If a person just follows price with his trading who cares who controls the markets?
Last week an artile ran in the WSJ something like, " high grain prices could give Bernake a headache" something along those lines. Well the very next day, boom limit down. It' more than likley just profit taking, but to think the government does not have it's hand in the markets is just plain stupid.
Certainly a lot of factors come into play with the markets. A lot of what we hear as news is oftentimes already factored into the markets. Factors that we think should affect the market often don't and factors that we think should not affect the market often do. If you just follow price you can save yourself a lot of grief and wasted energy worrying about this bit of new or that bit of news or who is behind the scenes trying to control the market. Just go with the flow and don't be locked into a certain opinion about which way the market should go.
I had the impression that the limit down day was somewhat weather related....that was a day or two after the massive heat wave that hit the midwest, followed by a new 6-10 day forecast of cooler temps and rain in IL & IA (which is very bearish for the mkts - the current weather we are having right now). I'm sure farmers saw this and started selling as much crop as they could to lock in those 3.60 prices.