2010-03-29

Meats Up, Grains Down?

Commodities are confusing markets!

Animals eat grains, so when grains go down you expect the meat market to go down too! But when grains were going up, most of the meat market was languishing at the lows. May be common sense is not that common in these markets. The meats markets is an illiquid market and not for faint hearted, definitely not for day trading in my book. But these markets provide (sometimes) good trends for long term/swing basis. I have been going through some of these markets and they have had good up trend lately, having languished at the bottom for most of the commodities bull run. So something is going on in these markets.