Gartman: We're Headed Toward 'Fruits Of Fracking,' Net Exports In U.S. Oil

A new report from Dennis Gartman at The Gartman Letter discusses the reaction that commodity prices have had to the the latest developments in Greece and China. While global equity markets have reacted positively to the most recent indications that Europe could be continuing its “kick the can down the road” approach with Greece, most commodity markets have also been strong in the past 48 hours.

Crops
The commodities world is watching for the details of today’s World Agricultural Supply/Demand Report. Gartman notes that, unlike previous years where water shortage was an issue, this year it has been a surplus of rain that has concerned many corn, soybean and cotton investors. Gartman is currently bullish on cotton.

Gold
Gartman explains that he is bullish on gold in terms of the Euro or the Yen, he has “no interest whatsoever” in trading gold versus the U.S. dollar at the moment. He currently recommends ETFs that price gold in the Euro, such as the AdvisorShares Gartman Gold/Euro ETF GEUR, and ETFs that price gold in the Yen, such as AdvisorShares Gartman Gold/Yen ETF GYEN.

Oil
Global crude oil prices are also responding favorably to developments in China and Greece in the past 48 hours.

Gartman mentions the halting of Libyan exports as another key driver of oil prices. “A calming of the situation in Greece; a ‘resolution’ to the collapsing stock market in China and a new problem in Libya has put a strong ‘bid’ into the crude oil market,” Gartman explains.

The United States Oil Fund ETF USO is up 1.6 percent since Wednesday's close after falling 14.0 percent in two weeks.