Friday, May 6, 2011

Commodities Plunge for a Fifth Consecutive Day on ‘Panic’ Among Investors

WTI oil futures are down another $1.82 at $97.98, corn is off 10 1/4 cents at $6.985, silver at $33.25 is down $2.99 today and 33% since last Friday's high.
From Bloomberg:
Commodities fell for a fifth day, extending the biggest rout since December 2008, as investors cut their holdings in oil, silver and industrial metals amid concern that economic growth will slow.

The Standard & Poor’s GSCI Index of 24 raw materials fell as much as 3.6 percent to 658.93 points, and was at 672.25 as of 10:20 a.m. in London. The gauge fell 11.4 percent in five days, the longest losing streak since August. Crude oil slumped as much as 5.2 percent, silver futures 5.4 percent and copper for three month delivery 1.8 percent. Even after this week’s plunge, the S&P GSCI index is still 6.4 percent higher for the year.

“It’s panic,” said Michael Shaoul, chairman of Marketfield Asset Management, which oversees $1 billion in New York. “It’s not a global financial crisis. It’s a classic liquidation move in a crowded trade.”...MORE