Last week coffee prices, this week cattle and cocoa/Sentiment/PMI's and China

We saw last week coffee prices go to a record high and today cattle prices are as well at almost $194 per pound. So are cocoa prices. Food inflation has not gone away and that steak is only getting more expensive but corn, soybeans and wheat prices remain well off their highs and why the CRB Food index is not at its highs. We remain bullish on ag, particularly the fertilizer stocks, in part expecting a move higher in those particular row crops off depressed levels.

Cattle

Cocoa front month contract

CRB Food Index

Corn

Soybeans

Wheat

An update on stock market sentiment, the bullishness remains giddy but a hair less so. The Citi Panic/Euphoria index remains well in Euphoria territory at .60 but down a touch from .62 last week. Above .41 is statistically significant according to Citi. Investors Intelligence last week said Bulls fell by .6 pts w/o/w to a still very high 62.3. Bears are at just 16.4 vs 16.1 in the week before. The 45.9 pt spread is well above the 40 level that would be consider extreme. The NAAIM (Nat'l Assoc of Active Investment Mgrs) Exposure Index is at 99.24, the highest since early July. Above 100 is considered all in from an exposure perspective.