Commodities Briefing: Hard and Soft

Commodities Briefing: Hard and Soft

Commodities Briefing: Hard and Soft

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

Commentary: Again, Crude Oil prices have risen the notion that the Iran sanctions could limit supply globally without possibly hurting the demand from China. But the prices face rejection from resistance at these marks as we saw on Tuesday.  PE

Crude Oil and Metals

NYMEX WTI Crude Oil at 69.48, now seeing 68, but there is room on the Northside on a clear break above 70-71.

ICE Brent Crude Oil at 78.03 tested 79.72 Tuesday before coming off to close at 78.17. This resistance is expected to hold in here, and will push the prices to 76 and lower near term. Or, if Brent Crude Oil moves North and holds a rise, it can hold at 78.50-79.00 near term.

Gold at 1199.70 trades below 1200 and can re-test 1190. Broad range trade within the 1230-1190 is here now for a while.

Copper at 2.6025 came off and now we are considering a test to 2.50-2.45, as seen on the weekly’s.

 

Agriculture Commodities

Chicago Board of Trade (CBOT) agriculture commodities finished mixed Tuesday, with Wheat futures dropping after Russia said it had no plans to restrict grain exports, Russia is the world’s biggest Wheat supplier.

The most active Corn contract for December delivery rose 3.25c, or 0.89% to close at 3.6825 bu.

December Wheat delivery dropped 14c, or 2.57% to close at 5.315 bu.

November Soybean delivery rose 0.75c, or 0.09% to close at 8.4425 bu.

Russia’s agriculture ministry does not see a need to impose export duty or curb grain exports in any other way, it said in a statement after a meeting with exporters Monday.

Agriculture analysts and market watchers have been bumping the price of Wheat in the past few weeks on speculation that the country would limit shipments.

The US Department of Agriculture (USDA) recently pegged Russian Wheat exports at 35-M tonnes in MY 2018-2019 that started on 1 June, down from 42-M tonnes the previous MY.

CBOT Corn futures firmed on support from news that Argentina planned to impose a 10.2% export tax on the grain, which could boost overseas demand for US supplies.

Soybean futures firmed after trading in both up and down during the session.

As for weather forecast for agricultural crop, flash flood warnings and watches are again in effect for much of central Kansas into northern Wisconsin as storms hammer both areas, according to the National Weather Service (NWS).

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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