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 have risen on indication 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 yet this week and next. With the EIA report Wednesday stating a decline in the domestic supply by 2.6-M bbl for week ended 24 August, some analysts feel that the data could tilt the Crude Oil prices to Bullishness near term. PE

Crude Oil and Metals

NYMEX WTI Crude Oil at 69.67, and ICE Brent Crude Oil at 77.39 have both risen and could move to 71 and 78  near term. Note: Both 71 and 78 marks are 1st resistances and if they hold could again push prices down next week.

Gold at 1212.90, and Copper at 2.73085 look stable aka Neutral and could see some rang trading with a slight Southside bias in here. Gold could trade in the 1210-1225, area, while Copper could be ranged within 2.70-2.76 for now.

 

Agriculture Commodities

Chicago Board of Trade (CBOT) agriculture commodities finished higher Wednesday, with Wheat futures surging more than 3% on concerns about global Wheat crops and technical buying.

Soybean and Corn cfinished modestly higher, following wheat.

The most active Corn contract for December delivery went up 0.25c, or 0.07% to close at 3.565 bu.

December Wheat delivery added 18.5c, or 3.54% to close at 5.4175 bu.

November Soybean delivery rose 2.75c, or 0.33% to close at 8.36 bu.

Russia’s IKAR consultancy Tuesday lowered its estimate of the country’s wheat crop to 69.6-M tonnes from a previous  estimate  of 70.8-Mtonnes.

Egypt, which has been seeking supplies, said it bought 350,000 tonnes of Wheat, including 290,000 tonnes from Russia and 60,000 tonnes from Ukraine.

Adverse weather in several producing areas including the EU and Russia has curbed prospects for global production in recent weeks.

The US Department of Agriculture (USDA) earlier this month pegged global Wheat output at 729.6-M tonnes, down from a previous outlook for 736.3-M tonnes, lowering production prospects in the EU by 8-M tonnes on the drought issue

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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