08/05/2024 Slight Weakness in Grains Encouraging In Light of Continued Collapse in Stocks and Energies

On the Grains Grains are weaker in overnight trade. As of 6am corn and beans were down slightly and wheat was weakest, but with losses still in single digits. That’s actually encouraging in light of the continued sell-off in the outside markets in overnight trade. Nonetheless, Bloomberg reports hedge funds have turned bearish on commodity futures in general for the first time since 2016. The sudden sell-off in stocks on weaker than expected job creation and the unexpected rise in unemployment sparked a sell-off in energies as well on Friday and it has continued overnight. The DJIA average broke its 3-month uptrend and took out all the gains since mid-June in just three days of trade including overnight losses and crude oil took out its June lows. But Iran has also rebuffed weekend pleas by multiple nations including its Arab neighbors not to retaliate for Israel taking out three top HAMAS and Hezbollah leaders, including one being hosted by Iran in Tehran itself. The new Iranian President has told the rest of the world bluntly he “doesn’t care if their retaliation widens the regional war.” Both stocks and energies have a look of “panic selling” that is likely overdone for…