Missed this item earlier, which crossed the tape while I was sleeping at 3:43 a.m. EST today, from Andrea Hotter, DJ Newswires assistant managing editor in London:
The current overall commodity markets find themselves near the most historically overvalued levels, on a short-term basis, in over 200 years, says Shawn Hackett of commodity brokerage Hackett Financial Advisors.
Adds that if history does repeat itself, “then a major correction in commodities can begin at any moment without warning.” Sees “extreme caution” as being necessary with only natural gas, coffee, milk and rice being attractive, although “all would suffer to some degree if a major intermediate term correction were to unfold in overall commodities.” LME copper, tin are at record highs above $10,000 a metric ton and $31,300/ton respectively, Liffe May sugar recently hit 30-year highs around $750/ton.
But don’t sweat it folks, it’s all supply and demand. Has nothing to do with oceans of hot money looking for a home.