It has been a bad day for soft commodities, with soybeans almost hitting my stop (now at breakeven) and cotton pulling back. I presume this is on general risk aversion and dollar strength as I haven’t seen any news to undermine the fundamental story in either market. On the plus side, however, the Euro has dropped sharply this afternoon, after testing my stop overnight, on downgrades by S&P of the debt of Greece (to junk) and Portugal.

Update: A commenter asks what is happening in Portugal. See my post here. Basically, their debt/GDP ratio is as high as some of the big Eurozone members, but they’ve had no growth for years and low domestic savings mean they have to fund the deficit externally.