Futures and commodities contined to be volatile in October of 2021 as energy markets ran roughshod. The biggest gainers were safehaven elements such as precious metals silver, platinum and palladium along with foodstuffs such as grains. The weakest was VIX as you would expect with US stock indices at record highs
Futures and commodities were hit violently in the first quarter of 2020 with the black swan Covid -19 event running roughshod over energy markets in particular. The biggest gainers were safehaven elements such as the VIX, treasuries and foodstuffs.
ViX was the worse performer in October as stockmarkets soared
It was a senaational month for stocks and energy in particular. The major indices all closed at record levels to end the month of October. S&P and NASDAQ posted their best month since November 2020. Tesla’s market capitalization surpassed $1.1 TN this week, the first junk-rated company with a trillion-dollar valuation. Now the richest individual in the world, Elon Musk’s wealth this week reached a staggering $300 billion. The Dow and S&P were higher for the fourth straight week. All 11 S&P sectors higher for October.
The flip side of the stockmarket rip higher was the VIX as greed took hold. The supply crisis and high inflation sent commodities such as grains and metals higher.
Oat Futures closed up 25.5% this month.
The United Nations index shows that global food prices recently hit a decade high, oat futures hit an all-time high of $6.36 a bushel recently. The catalyst was drought hitting Canada, who is the world’s largest exporter of oats, for which demand has increased as oat milk gains in popularity, which is a huge positive for Oatley. The COVID-19 pandemic has driven consumers toward healthierfoods and grains argues Randy Strychar, president of Ag Commodity Research and Oatinformation.com.
Canola closed up 15.4 for the month
U.S. West Texas Intermediate futures were up 11.21% for the month, crude has been on a tear, hitting new 7 Year highs over $84 as geopolitics and world energy shortage impacts. Crude storage at Cushing is near lows seen in 2018). Natural gas pulled back from 14 year highs over $6.50 but still closed the month over $5.30 btu.
Sources: Finviz, TC
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