Oil Effect on Commodities and Inflation

[FireWeatherMet]

If anyone hasn't noticed, we've had a massive runup in equities, Up 13% (C) to 16% (S),
That doesn't happen just to random chance, so you do have to take an honest look around and see whats going on,

Biggest "Fear Factor" on stocks is INFLATION. It leads to Fed jacking rates, and that leads to Recession.
Inflation + Recession = Stagflation.

But...what happened at the start of this meteoric stock rise in late June?

OPEC, free from its 2 year agreement with then President Trump to drastically CUT oil production (Yes that happened, April 2020), have announced they will be increasing production.
Demand for Oil, given the high prices, began to wane.
Law of Supply & Demand (Capitalism 101) kicked in, and the price of Oil has plummeted in the past 1 1/2 months.
And since sharply rising oil prices led to rising commodity prices, we are now seeing the opposite...commodities are crashing as well.
So if you take a look at Oil and other commodities on the charts below...you will see that we very likely have reached "Peak Inflation".
The "Smart Money" sees that...and have participated in this latest rally.
The "Dumb Money" is still shell-shocked, "Fox Shocked" etc, and have ignored these very significant signals, and keep muttering Gloom & Doom headlines from May-June.

 

[Bullitt]

I agree peak inflation has probably passed. Gasoline demand is below where it was at the same time in August 2020. If only the US had more refinery capacity.

https://www.yardeni.com/pub/gasoline.pdf

OPEC is nothing but a bunch of greed driven cheaters. They are all over pumping trying in an effort to sell as much as they can at the highest prices they can get. High oil prices cured the high oil price problem. Demand for gasoline dropped this summer.

Markets looked forward to wheat being allowed out of Odessa despite the Ukraine conflict.

China housing is going through a major bust with the people finally saying enough is enough and refusing to pay for properties that aren't even built yet. Glad to see we're below 2008 and 2010 bubble prices, but does the copper crash indicate recession?

Just wondering because I don't know the answer - With corn being used in higher amounts during summer months for ethanol, does gasoline demand affect corn prices?

 

[FireWeatherMet]

I agree peak inflation has probably passed....

- With corn being used in higher amounts during summer months for ethanol, does gasoline demand affect corn prices?

I dunno...but the main factor for commodities is "Transporting" them.
I think thats why corn, wheat etc all lines up with the big 30% drop in oil.