Commodities Briefing: Hard and Soft

Commodities Briefing: Hard and Soft

Commodities Briefing: Hard and Soft

$GLD, $SLV, $CU, $OIL, $CORN, $WEAT, $SOY

Commentary:  Gold, Crude Oil and Copper moves higher, but have major overhead resistances, which could limit the Northside. Crude Oil seen trading sideways. PE

Note: Helping commodity prices was a drop in the dollar after President Donald Trump said he was “not thrilled” with the Federal Reserve for raising rates and that the central bank should do more to help him boost the economy.

The criticism came ahead of the release of the Fed’s minutes of its August policy meeting Wednesday, which is expected to reaffirm its confidence in the US economy and its commitment to future rate hikes.

Crude Oil and Metals

Gold and Copper have risen slightly but have resistances above current levels which could limit the Northside.

Both ICE Brent Crude and NYMEX WTI Crude are Neutral and seen trading sideways in here.

Tuesday, weakness in the USD helped commodities

  • WTI Crude Oil +0.6% to 65.83 bbl
  • Gold +0.5% at 1200.10 oz
  • Copper: +0.8% at 2.69 lb

Agriculture Grains

Chicago Board of Trade (CBOT) agriculture grain futures finished lower Tuesday with Wheat extending losses over Russian supply worries and profit-taking.

The most active Wheat contract for December delivery fell 14.75c, or 2.62% to settle at 5.4775 bu.

December Corn went down 2.25c, or 0.6% to close at 3.7425 bu.

November Soybean were down 7.25c, or 0.81% to settle at 8.86 bu.

Although Russian officials have denied reports about any limit on Wheat exports due to ongoing drought, traders are still concerned that such a fear would cause sellers to liquidate supplies, pouring a large amount of wheat in a short time into the global grains market.

Such speculation would drive down Wheat futures instead of pushing up the prices, said analysts.

Additional pressure came from profit-taking, after nearly 2% weekly rise due to adverse weather conditions in many wheat-growing countries.

CBOT soybeans were lower as a crop tour just confirmed large Soybean counts in the states of Ohio and South Dakota.

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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