Commodities Briefing: Hard and Soft
Commentary: Concerns about Tropical Storm Gordon’s minor impact along Gulf of Mexico and Central Gulf coast could have aided a fall in Crude prices Wednesday. Also, there are talks of a possible period deadline ending today for the US tariffs on another $200-B of Chinese goods. Overall, the Northside appears limited for Crude Oil prices near term. PE
Note: Slight dip in the Crude Oil prices and gainers in precious metals and Copper is seen in current trade.
Crude Oil and Metals
Ice Brent Crude Oil at 77.09, and NYMEX WTI Crude Oil at 68.56 dipped. And the overhead resistance in Brent Crude Oils holding and could push the prices South in near term to 76-75, and WTI Crude Oil could be dragged to 66 with Brent Crude. Near term looks Bearish to me.
Copper at 2.6280 will test 2.65 and then come off. The broad range of 2.70-2.58 look likely to hold medium term.
Chicago Board of Trade (CBOT) agriculture commodities finished lower Wednesday, with Wheat futures falling over 1%, as export prospects for US supplies remained soft despite crop shortfalls in Key production areas of the Black Sea region.
The most active Corn contract for December delivery fell 3c, or 0.81% to close at 3.6525 bu.
December Wheat delivery dropped 9.75c, or 1.83% to close at 5.2175 bu.
November Soybean delivery went down 6.25c, or 0.74% to close at 8.38 bu.
CBOT Corn futures dropped after earlier touching a 2-week high as investors assessed the impact on crops of torrential rain in parts of the Us Midwest.
Soybean futures also fell on fresh concerns about weak demand of US Soybean export.
Wheat futures fell 14c Tuesday after Russia’s government said it didn’t see a need to limit exports of the grain.
Many agriculture analysts and traders had driven up the price of wheat on speculation that shipments from Russia, the world’s biggest exporter of the grain, would be curbed due to production issues.
As for weather forecast for agricultural crop, Tropical Storm Gordon made landfall near the Mississippi-Alabama border Tuesday, bringing rain, floods, and storms for parts of the states into Arkansas for the next few days, according to the National Weather Service (NWS).
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