Bespoke's Commodity Snapshot (5/1/08)

Most commodities have pulled back significantly in recent weeks -- with oil, natural gas and corn being the exception. While these three are still trading close to the top of their historical trading ranges, the rest of the commodity sector is at or near oversold territory.

As we noted yesterday, the price chart of gold looks horrible, as its head and shoulders pattern has now been confirmed with the lower low that was just made. Wheat is another commodity that has endured significant declines. From its peak in early March, the price of wheat is down 35%.

Comments

[CrossingtheT]

Copper is gonna be interesting. Up or down?

[Ames Tiedeman]

Down...

This is how corrections start..

[dieuwer]

Up.. + 0.75 to 391.20

[Yellowstone]

Head and shoulders top for gold? I don't think so. Hee hee! If you have been riding the golden bull since 2001 this is just a typical shakeout or bull market correction. Watch this "head and shoulders top" resolve itself to the upside in the next few weeks. The fundamentals have not changed. Ben is still overheating the printing press. This thing is just getting warmed up. Once the weak hands are out, it off to the races again.

[ssross]

copper is interesting: PCU - Mexico on perma strike at Cananea; Codelco doing the strike thing yet again; FCX - still disappointing copper veins at Grasberg; BHP and RTP - flooding. LME store dropping to 5 year lows. Does supply and demand trump strenghtening dollar. Any thoughts? I think copper holds close to 4 bucks despite stronger dollar.