great selloff on thursday & friday - what do you make of this?ST
Across the board, most commodities recorded a sharp drop yesterday and today. After the 10 figure drop in the Thursday trading session, oil today plunged again to 94.63 before getting back up to 98. It mostly traded between 98 - 102. Gold dipped below 1500 (was forming the downward spiral since late April anyway). Corn went down to 680 from 730-740, despite the fact that weather had been quite unfavorable going through the critical planting season in the U.S.
So what is going on in the commodity markets exactly, and who initiated the selling? Do you guys think this year is going to be another version of 2008?
Also, does the fundamental (both demand & supply) stay as strong as it was earlier this year? At the time there were the issues of Libya, USD depreciation and the battle for acreage. What now?