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WSJ Reports Heavy Outflows From Commodities Futures Markets in Recent Weeks

hank
edited July 2022 in Other Investing
“Traders and analysts say that some of the decline in commodity prices can be traced to the retreat of investors who piled into markets for fuel, metals and crops to hedge against inflation. JPMorgan Chase & Co. commodity strategist Tracey Allen said about $15 billion moved out of commodity futures markets during the week ended June 24. It was the fourth straight week of outflows and brought to about $125 billion the total that has been pulled from commodities this year, a seasonal record that tops even the exodus in 2020 as economies closed.”

From: The Wall Street Journal July 5, 2022

Article: “Falling Commodities Prices Raise Hopes That Inflation Has Peaked “ - by Ryan Dezember

Comments

  • Sven
    edited July 2022
    Energy situation is evolving quickly. Less than 2 months ago crude oil was priced near $120-130. Also there was concern about food shortage due to the Ukraine war. Commodities and their futures are the few brighter spots in 2022. Now it is the reverse.

    https://aljazeera.com/economy/2022/7/6/oil-steadies-after-plunging-on-recession-fears

    Wonder if Powell will raise another 75 bps in July? In addition, China’s demand on oil is considerable smaller due to their zero-tolerance COVID policy. Some lockdowns are beginning to lift in several large cities.
  • johnNjohnN
    edited July 2022
    Ty
    Think the July raise and next one two months maybe already priced in w market sentiments,
    Powell already stated this past few meetings/ few months. Cpi data coming this wk and we should expect little cool off (not 8.6%) .

    Vegas have 83% likelihood 0.75% rates raised July 2022

    Regardless i think we maybe very close/near turning points. Hard to predict bottoms, but best maybe pick select stocks or funds etf you love and stick w them Long terms/ 5 yrs from today you maybe very happy if picked stocks/funds/etf at good prices. Market sentiments also start reversal slowly over past few weeks
  • yogibearbullyogibearbull
    CME Fedwatch is a better tool for rate hike probabilities (95.1% for 75-bps hike at July FOMC) than the LV odd-makers,
    https://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html
  • WABACWABAC
    edited July 2022
    Inflation at an end? Or recession to decrease demand?

    If I was a betting man, I'ld say the latter.
  • AndyJ
    edited July 2022
    Backwardation in oil futures: don't expect a major price bounceback. McClellan's weekly Chart in Focus.
  • BaluBalu
    @johnN, I do not have CPI release from BLS as one of the economic data due this week. Where r u expecting CPI data this week from?
  • johnNjohnN
    edited July 2022
    Hi Balubalu

    Sorry

    July13th

    Imho Labu is probably good etf to add now fyi hagd lol
  • BaluBalu
    Hi JohnN,

    Thanks. What is hagd?

    You may be right about LABU but I doubt I have the Zen / stomach for it. A
  • johnNjohnN
    edited July 2022
    = have a good day

    We been trading #spxl #soxl #labu #tna #gush #fngu recently
    #Btbt #Vezu #bito cryptos - etf

    Reverses etf - #fngd #drip


    Prob moon if landed on right sides (environments)

    Large losses otherwise
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