October Seasonal Commodity Performance 10.1.2012

Shorting silver from October 4th to October 29 has worked 23 times of the last 39, or a 59.0% success rate. Strong policy initiatives in Europe and the US last quarter could be driving usual seasonal dips for metals higher. Crude oil generally stays weak in October and stays weak until December. Crude futures were down in the month of September with a slight rally in the last week. 

In grains, long trades include corn and soybeans, while wheat tends to consolidate. Soybeans usually decline from a peak price in June. This year Soybeans saw a low in June, gained till early September and then declined till the end of the month.  Corn hit highs in August because of droughts, declined into September and had an huge rally on the last day of September.

Live cattle prices should continue its uptrend, and with possible corn shortages forcing early slaughters this summer, a strong uptrend may be in order. Hogs were also affected by the droughts, which may fight the usual downtrend in October when farmers would normally be fattening hogs with corn harvests.