Commodities News, Page 2

The trade war between the United States and China has now entered in a new phase as experts are now considering that China abandoned any hope for a trade deal with the U.S. Real concern about global growth has taken the market. Risk aversion is the theme of the day,

In that framework, political, economic, and hard weather conditions included, grains are posting small gains on Friday. Also influenced by profit booking on the last day of the week.

Risk-Off sentiment is taking the market as the NFP report failed to move the market as the numbers were decent, mostly in line of expectations, but neither too good or too bad.

Grains investors focus now on Friday’s employment report. Not for a direct impact from NFP, but as a way to check what Jerry Powell and colleagues will be doing in the next meetings with a strong or weak employment report.

Jerry Powell sent a clear message yesterday. Not too fast regarding rate cuts and then the dollar soared, sending gold down. Perspectives of a one and done rate cut are now higher. However, yes, more rate cuts are not out of the table.

Currently, prices of soybean are moving at 8.710, posting 0.33% daily losses. The technical picture remains pretty negative, but a brief period of consolidation is expected ahead of the FOMC meeting.

Also, keep in mind that today is the last day of the month, so, experts are waiting for significant movements right after the FOMC decision. Potential profit taking and rebalancing are on the cards for gold, silver, and other metals.

Natural gas futures strengthened on Tuesday as traders lightened up on the short side on the thought that excessive concerns about cooling temperatures had produced oversold trading conditions.

The United States Department of Agriculture reported the crop conditions for the last week. Corn was rated 58% good or excellent as of last Sunday. Up from 57% the previous week, but well behind the 72% rating this time last year.

Metal traders are expecting a 25 bp cut by the FOMC, but what is now more interesting is any hint the Fed would be willing to give signaling more cuts in the second half of 2019.

Soybean is trading 0.65% positive on Monday as the grain is moving at 8.850. However, technical conditions suggest that the upside will be short-lived and the 8.900 will be strong resistance.

Technical conditions for gold are weak. Only the Fed would give life to the metal and give it enough power to break above the 1,430. Think that the 25 basis point is already priced in.

“There has been a sea change in central banks’ attitudes toward gold since the financial crisis,” said Natalie Dempster, a managing director at the World Gold Council. “Europe is itself now a net buyer of gold – no one needs a sales agreement anymore.”

U.S. West Texas Intermediate crude oil futures displayed their tightest trading range since the week-ending April 19 as traders battled over both potentially bullish and bearish news. Gold futures also posted a tight range last week that fell inside the previous week’s range. Speculative natural gas longs are likely on

The United States Department of Agriculture reported plunging week-to-week inspections. U.S. spring wheat crop was rated 76% good or excellent, unchanged from the previous week.

XAU/USD is now testing the 1,425 area, where a confluence of 200 and 50 days moving averages are. Now, profit-taking is expected due to normal Friday conditions.

The International Grains Council is now expecting a weaker production of grains in the 2019-2020 seasons following hard planting conditions and weather around the world.

Gold always likes when central banks consider more stimulus, but this time, ECB and Mario Draghi seems to be diminishing returns to certain policies in the near future.

The concerns are pushing prices up, while the forecast for better weather conditions contains the upside. Investors are now waiting for the new acreage count and grains report that the USDA will publish the first week of August.

Gold is finally trading positive after three negative days, while silver and platinum have jumped to fresh highs. The Gold/silver ratio is felling for the eighth straight day