Monday, July 5, 2010

Ag prices in gold

A while back I mentioned that ag commodities would be a good buy if this ratio ever hit, or got close to hitting, that lower trendline. That's pretty close.

whether food stuffs go up in dollar terms right now I don't know, but relative to metals ag looks cheap, and the ratio appears due to bounce.

Oh, and by the way, the long-term chart for soybeans looks pretty neat these days. check out that triangle.

I don't know which way that will move, but the move should be a good one. If you trade futures, beans are where you want to keep your eyes focused.