Commodities Briefing: Hard and Soft

Commodities Briefing: Hard and Soft

Commodities Briefing: Hard and Soft

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

Commentary: Crude Oil prices look Bullish near term on expectations that weekly US inventory data will show a decline and sanctions on Iran will impact supply. PE

Crude Oil and Metals

NYMEX WTI Crude Oil at 68.92 and ICE Brent Crude Oil at 76.29 can move  71-72 and 78 respectively.

Note: 78 on Brent Crude Oil is major resistance and is likely to hold medium term.

Gold at 1215.40 is Bullish while trading above 1211 and can rise move to 1230/40 medium term. My overall view for the precious Yellow metal is Bullish.

Copper at 2.6955 looks stable in here. If the Chinese Stock indexes moves up sharply, then the Southside for Copper could be limited and it could move to 2.85. Or, if the price falls below current marks, we could see a test of 2.65/60 ahead for the Red metal.

 

Agriculture Commodities

Chicago Board of Trade (CBOT) agriculture commodities traded lower Monday morning, with Soybean futures dropping over 14c/bu after the Pro Farmer Crop Tour of the US Midwest pegged output above the government’s already-lofty forecasts.

As of 1500 GMT, the most active December Corn was down 2.5c at 3.6025 bu.

November Soybean were down 14.75c at 8.405 bu, and

December wheat was 8.25c lower at 5.065 bu.

Participants on the annual tour of the Corn Belt projected Soybean production at 4.683-B bu on yields of 53 bu an acre. That tops the US Department of Agriculture’s (USDA) outlook for 4.586-B on yields of 51.6 bu per acre.

Wheat futures fell for a 6th session running on weak demand for US supplies. Last week’s Export Sales Report showed sales fell to the lowest marks in 6 weeks.

As for weather forecast for US agriculture crop, parts of the Midwest are in excessive heat or heat warnings start Monday, as heat indexes are expected to rise over 100 Fahrenheit degrees.

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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