7 Jan 2022: Weird price movement of the commodities market

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Readers who have been following my writeup since I started writing on public platform would know that I have been monitoring commodities prices for many years by now. It comes as a very weird price movement for WTI oil to again breach 78 USD and touched over 80 USD amidst the demonstration of an intention of a hawkish federal reserve. Is this warranted or is there too much speculation? If it is warranted, is there so much demand that outstripped supply or is there truly a case of supply disruption that can cause a price surge?

Even other prices like lumber prices have creeped back up after a historic price run around mid of the year 2021 but have fallen all the way down back to around 470 USD. Today it has marked over 1100 USD! Its really surprising for such price movement and I seriously doubt that chasing now is not an easy proposition as volatility will hit stop loss limit easily making a higher stop loss limit warranted yet unwarranted in the sense of risk rewards.

Something really has to give way.. Its either a further commodities prices surge that leads to a further escalation of indication to raise rates even faster by Federal Reserve or a current correction in commodities prices ahead of the indication.. It truly is tough to make a bet on this.... In either way, I see that the prices will come down. The only question is how much more do the commodities go up before crashing way back down.... The days are near... Question is the exact time point which is all the more critical for futures trading...

Do note futures trading requires good emotional control, risk capital allocation and risk management.