Crude oil has fallen by over $35 since a high point in June, with no major counter-trend bounces – only a flat spot in late October as the market paused for a bit before falling to current levels. We saw bottom extensions just before that flat spot and now we have them again in both WTI and Brent:
we would buy some here – we have no preference as to which one. Although probably Brent is the cheaper when compared with recent price levels, the economic outlook probably favours WTI more.
Some other commodities have bounced well. We have been calling for this since September and the grains have since rallied – all except for Soya Oil, which is always our preferred ‘short’ candidate. We will look for a place to sell it soon but have no particular recommendation in grains until then. Sample charts:
