Central Valley Cooperative

The energy complex is trading slightly higher this morning as the dollar continues to fade again. Today is report day, a day later than normal due to the Memorial holiday. The API later yesterday afternoon was bearish oil and gas as the dollar was trading higher. This morning, the dollar is trading lower and near yesterday’s lows. A break lower will be a catalyst for commodities to rally. This is a confusing trade as Greece was downgraded again. More economic new leads us to believe that the U.S. economic recovery is stalling. Yesterday’s falling stocks market certainly pressured the energy complex lower as indication of this concern. More political unrest in the Middle East maintains support with this energy market. Demand erosion is winning the bull bear energy battle. The recovery of the global economy is stalling and higher energy prices are certainly a good share of the battle. Inflation and specifically food inflation has stolen the spendable income of many in other parts to the world.