Fed Stimulus a Downer for Commodity Futures

There is mounting concern with the overview policy makers from around the world just aren’t doing enough to promote economic growth.  Proof of this might be seen in recent commodity futures charts with prices plummeting from recent highs.

Even as the European Central Bank, and the US Federal Reserve, have “expanded supplies” in the form of bond-buying and a third round of debt-buying here in the States, one of the popular commodity indexes are still lower than the announcement of these money supply programs..

While Thursday’s PMI figures might not yet reflect the impact of the Fed and Bank of Japan’s moves, many economists feel the measures may prove to be too little, too late.  Even with policy action, economic growth in major countries is likely to remain disappointing in 2013,” said Bret Aaron, head of trading operations at Global Futures in Encino, CA, regarding the current commodity futures situation.

From the perspective of the agricultural futures markets, the grain complex are beginning the early stages of down-trends in the soys and corn.  This at a time when the drought situation looked dire…

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