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PFGBEST® Research Posts Midyear Commodities Outlook

CHICAGO, July 8, 2010 – PFGBEST, one of the nation’s largest non-clearing Futures Commission Merchants (FCMs), has updated its annual PFGBEST Research Outlook 2010 to reflect changes and news events that occurred since January into their analysis for the second half of 2010.

“I will let the PFGBEST Research experts tell you market by market what some of the trading opportunities and challenges are,” said PFGBEST President and Chief Operating Officer Russ Wasendorf, Jr. in his cover letter to clients. He referred to events such as the U.S. Federal Reserve Board’s delicate, historic high wire act, the 2010 Euro crisis, the BP oil spill off the shore of Louisiana in the Gulf of Mexico, and emerging weather patterns. In the PFGBEST Research Outlook 2010, published at the start of the year, PFGBEST leaders had forecast a potential globally cataclysmic event that could emanate from debt-ridden nations and businesses all around, which of course, did occur.

Some highlights from the PFGBEST Research Outlook 2010 Midyear Update:

  1. After expanding at a 3.4% pace during the second quarter, real GDP growth in the U.S. is expected to slow to a mere 2% in the second half
  2. The Fed will be looking for consistent increases in non-farm payroll and continued drops in the unemployment rate before it raises rates…doubtful until about June of 2010
  3. First half 2010 is referred to as the “flight to quality rally” as speculators fled risky trades and looked to safety and stability in the U.S. dollar, Treasuries, securities and precious metals
  4. Reform to bring the U.S. budget deficit down will likely require a mixture of higher taxes, reduced benefits and tougher eligibility requirements, all of which will darken investors’ moods
  5. Specific geo-political tensions are fueling stresses between North and South Korea, Israel and Palestine, and along the Iran/Iraq border, conditions that fuel bullish momentum in gold
  6. Oil prices are artificially stimulated and could fall hard when global central bank financial maneuvers are limited or halted
  7. The worst hurricane season since 2005 is forecast by the normally conservative National Oceanic and Atmospheric Association
  8. Large, trend-following funds hold near-record short positions in some grains, although strong export demand psychology flourishes
  9. If July and August are both hotter and drier than expected in the U.S., grains could rally sharply
  10. Consumers may resist beef prices at the grocer and reduce demand
  11. Debt contagion in the Euro Zone could soften global demand for some luxury commodities like cocoa, as 16 of the top 20 cocoa-consuming nations are European
  12. In an all-new “Institutional View” from PFGBEST Forex New York, there are some trades with great risk/reward potential in second-tier currency markets, such as the New Zealand dollar, the Chinese yuan, and the Swedish krona.

Anyone can visit www.PFGBEST.com to register for their FREE, electronic version of the PFGBEST Research Outlook 2010 Midyear Update. PFGBEST Research analysts are available for interviews daily.

PFGBEST is a rapidly-expanding global financial services and technology firm, specializing in electronic trading, futures, forex, options, and managed accounts. The company is also an industry leader in investor education, and it offers numerous free webinars each week attended by hundreds of people wishing to further their knowledge and skill in trading, charting, comprehending various government reports, enriching their understanding of trading psychology, and many other topics.

Media Contact: Patricia Campbell pcampbell@pfgbest.com 312-775-3411