Last week leading commodity futures trading analyst David Hightower told the Agrimoney Investment Forum that this current rally in the overall agricultural markets are still in their early stages due to demand coming from emerging countries. Overall, all grain futures and livestock markets are in up-trends at the Chicago Board of Trade and the Chicago Mercantile Exchange, except for cattle futures.
Hightower believes the costs of commodity production have been suppressed for the last six months to a year and can’t be kept down much longer. Even though the commodities index has risen over 12% this year, he claims they remain well below historic highs.
David Hightower, founder of the influential “Hightower Report” from Chicago, shared his fundamental view of the agricultural futures markets by stating, “We are much closer to the bottom for commodity prices than to a high.” Hightower adds, “If you think you have missed the commodities move – think again.”
After reaching significant highs earlier in the month, agricultural commodity futures have pulled-back significantly enough to start looking for entry signals to the buy side for at least a test of recent highs. Cattle futures, however, continue to trend in the opposite position while hog futures recently extended their gains.
ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION.