Commodities News

There are a record number of shorts in the natural gas market and they have to either rollover into the October futures contract, hoping for a bearish September, or they have to start covering while preparing for the Fall Shoulder Season. It looks like some have decided to lighten up

Soybeans accelerated in the last few hours to break above the 8.68 short term resistance, and it is now trading at 8.70, its highest level since August 26. Improvements in the trade war and new commercial options for US grains lifted the unit.

XAU/USD advanced to break a short term resistance at 1,545 and to trade at highs since August 25 at 1,550. However, Feng remarks sent the metal down. The unit is now trading 0.24% negative in the day at 1,536.

Futures of wheat are now trading on recovery mode, but it is facing the 4.74 short term resistance at this moment. Currently, the unit is still 0.70% negative on the day. However, a potential bullish movement is now on the cards.

Gold is heading to close its fifth straight week with gains. Just in August, XAU/USD advanced over 9% in a month that is heading to become the biggest monthly increase since February, and it seems the rally won’t stop anytime soon.

Early in the day, soybeans, wheat and corn traded sideways or negative but grains recovered ground in an improved sentiment. However, rising USD/CNY is adding more risks to farmers’ sales to China due to an expensive dollar.

Metals are trading positive on Tuesday as investors are digesting economic data in Germany and the news about the trade war between the US and China. Besides, a cheaper dollar is making holding in gold more attractive.

Technical conditions suggest a potential bullish outbreak with the 8.60 area as a buying zone. MACD seems to be ready to go above the zero line with the faster line going above the slower one. Also, the 8.60 level looks like strong short term support.

Sentiment rollercoaster remains alive. Gold is trading backed on fundamental news, technical studies are limited due to the current global situation, and all the moves are clearly risk aversion/appetite, and US bond yields influenced.

Investors are now closing positions ahead of the weekend but also ahead of Trump retaliation measure that he will announce this afternoon. Farmers are holding their breath as worries of an even ugliest framework for their business is on the cards.

The cocktail of news fueled XAU/USD to initially break above the 1,500 level that was a resistance a few hours ago, but now the unit is recovering its mojo, and it is rallying as investors are taking positions on the speculation for more rate cuts as soon as September.

US farmers are complaining that the government crop report did not reflect damage from extreme weather conditions in the last months, and it looks like they are right after the Pro Farmer Crop Tour is reporting significantly lower yields than the WASDE report.

In this framework, metals are reluctant to take any direction, and now all eyes are on what Fed boss Jay Powell will say in his scheduled speech in Jackson Hole later this week.

Technically, corn futures looks heavy and studies are signaling more room for the downside with the 3.60 area as the next critical support. Below there, please check the 3.50 and 3.40 levels as essential zones of buying.

XAU/USD is currently trading at 1,501, falling 0.40% in value so far on Wednesday. Technical conditions are suggesting that a potential downtrend is on the making as the MACD did a bearish cross. However, it is still too soon to say it.

Grains are trading down on Tuesday as investors are digesting deteriorating crop conditions and lower yield in the acreage. However, the market is still confident from the WASDE report published last week.

Gold is reclaiming the 1,500 level as the metal is moving 0.60% positive at 1,504. However, technical studies are suggesting that the downside is alive and healthy. Watch out the MACD indicator that is about to cross lines in the daily chart.

CoT reported a decline in the long positions for corns to the lowest since May. Investors were net long 21,527 corn contracts, the smallest bullish stance in the week of May 28.

Gold and silver are trading down on Monday as investors are betting on riskier assets such as equities and currencies. XAU/USD is testing the 1,490 area, while silver is trading below the 17.00 area.

Profit taking is the theme of the day; also, some revival in risk appetite and corn long interest due to low prices per bushel.