UAG - Wheat Falls - The Writing Was On The Wall In The KCBT-CBOT Spread
When someone asks me which commodity is the most sensitive to global political trends, my answer often comes as a surprise. Many market participants would answer that crude oil is highly political because more than half of the world's reserves of the energy commodity reside in the most turbulent region on earth, the Middle East.
While I would never discount the political nature of the oil market, as a student of history it has been the price and availability of bread that had brought down more governments and caused more unrest than any other product.