Commodity Futures Plunge on EU Impasse

News from overseas prompted commodity futures traders to cut bullish bets on commodity futures markets the most this year.  With Greece struggling to form a new government, to China’s weaker than expected industrial output, the bleak outlook took its toll on on the commodity futures markets.

The Commodity Futures Trading Commission revealed recently money-managers cut their bullish positions across the eighteen different futures markets by almost 20%.  Even the S&P’s Index of 24 raw materials managed to drop almost 7% over a week and a half time period – the biggest slide since the end of 2008.

Chris Hildebrand, vice-president of trading at HighGround Trading Group in Chicago, stated today regarding the current commodity futures situation, “The major consensus is that global growth is slowing down and you can see that in how the markets have reacted over the last couple of weeks.”  Hildebrand added, “Until there is something resolved with these countries and their rolls in the “Euro,” you will continue to see downside pressure on the contract and commodities overall for that matter.”

Most the commodity futures markets we trade had been in strong uptrends, but we’re seeing a possible trend change in the soy complex and in the livestock markets.  While these markets remain volatile, or in a sideways trading pattern, I feel most comfortable on the sidelines


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