A Contrarian View From Peak Theories: Food Prices Set To Fall?

Tyler Durden's picture

Zero Hedge enjoys entertaining contrarian views, even to our own. The most notable recent one comes from Peak Theories which speculates that based on technical patterns, food prices are bound to fall. The one exception is rice, as we have speculated is long overdue for a major surge in price. Furthermore, as we will shortly show, speculative traders seem to agree with CFTC data indicating that net non-commercial specs continue to surge. As for dropping commodities, the ball we believe is in Bernanke's court - as last week's ICE margin hike in cotton demonstrated, exchanges' actions are now backfiring, and the only immediate price catalyst is broad market liquidity. Thus the question is whether Bernanke believes the Russell 2000 is at a high enough level that allows for a food price correction yet...