Commentary

Notes From Underground: A Question to Ponder

Jul 06, 2021

Do China and Russia have state authorities investing in the markets?

If the answer is yes then global investors have many issues to consider. The use of massive amounts of leverage (perfectly legal) utilized by Sovereign Wealth Funds and... more

Market Summary: The Fourth of July 2021

Jul 06, 2021

Petroleum prices continued to increase as Crude rose for a sixth consecutive week, the longest such streak since December. A dispute within OPEC has extended their scheduled meeting into this week, tempering gains on Friday. All other key market... more

Q2 2021 is in the Books - Commodities Continue to Post Gains

Jul 04, 2021

The raw material markets asset class moved higher in the second quarter of 2021 after posting gains in Q1. The commodity asset class consisting of 29 of the primary commodities that trade on US and UK exchanges moved 10.76% higher in Q2 than the... more

Market Summary: June 27, 2021

Jun 28, 2021

Crude prices rose for a fifth consecutive week as continuing optimism regarding the ongoing economic recovery propelled prices to their highest level since October of 2018. This fifth consecutive week of increases represents the longest such... more

Notes From Underground: Plus ça Change, Plus C’est La Même Chose (An Ode to Jerome)

Jun 22, 2021

As promised, here is the podcast I recorded with Anthony Crudele. There is a great deal expressed in 52 minutes following the June 16 FOMC meeting. The fact that Chair Jerome Powell kept on keeping-on with full blown asset purchases leaves me in... more

Notes From Underground: From Tweets to Tweaks

Jun 22, 2021

Happy father’s day to all who are one and have had one. Just nine months ago the markets were experiencing convulsions as the then-U.S. president would unleash tweet after tweet at all hours. We certainly don’t miss the key-word-driven algos... more

Market Summary: June 20, 2021

Jun 22, 2021

Crude prices rose for a fourth consecutive week as optimism regarding an economic recovery propelled Crude prices to multiyear highs. The ambiguous intent of the current administration regarding renewable fuel policy has sent mixed signals to the... more

Market Summary: June 13, 2021

Jun 14, 2021

Petroleum prices rose for a third consecutive week, reaching their highest levels since October 2018. A positive report from the EIA stating that global demand would reach pre COVID-19 levels by the end of the year touching 100.6 MBPD and... more

Will Biodiesel Demand Lead to a Paradigm Shift in Soybean Oil?

Jun 09, 2021

Prices for the actively traded July 2021 CME Group soybean oil futures reached all-time new highs in recent trading sessions (see Figure 1), spurred by increasing demand from the biofuels industry, a big piece of President Biden’s call to cut... more

Notes From Underground: Schauble Pivots, Brainard Postulates

Jun 07, 2021

The unemployment data was not as robust as expected but not bad since hourly wages rose above consensus, the work week remained elevated and the jobless rate dropped to 5.8%. The headlines are always subject to severe review doing these... more