Good morning,
DXU9 96.480 +0.056 GCQ9 1416.3 +4.1 ESU9 3021.50 +6.00 CLQ9 60.33 +0.12
It feels like an old school summertime Monday, with lighter volumes observed overnight. The main highlights for the week will be the June Retail Sales report tomorrow and the release of earnings from the major banks. The positive sentiment overnight comes from better than expected factory output and retail sales data out of China for June. Aside from equities, this has given copper a bid as well. Gold is up today, as most thoughts continue to be towards more global easing of monetary policies, including in China, to sustain any economic momentum. Oil is sitting just above $60 today, as Tropical Storm Barry pushed through over the weekend. Risks of flooding in these areas exists. Grains are mixed today, with thoughts that the very hot temperatures observed over the weekend in the corn belt will bring stress to the developing crops. Wheat prices are lower as harvest progresses. This afternoon brings a fresh look at crop conditions, and how the wheat harvest is progressing. Grains are back to a weather market for the next couple of weeks, ahead of the important August WASDE report from the USDA. Cocoa prices are lower this morning, as the recent rally has shrunk margins for the processors. An abundant crop from last year’s harvest, coupled with healthy crops this season as Brazil moves through harvest are weighing on coffee prices. Cotton has a small bounce today, after trading at a 3 year low on Friday.
Technical Moving Averages:
Product 50 day 100 day 200 day
SX9 891.00 909.75 925.00
CZ9 427.75 409.50 405.00
WU9 501.50 485.75 515.00
KWU9 452.50 452.00 498.75
MWU9 549.00 551.25 574.00
SMZ9 316.6 316.9 319.2
BOZ9 28.25 29.22 29.68
CLQ9 58.06 59.63 59.07
GCQ9 1340.6 1324.8 1299.4
LHQ9 85.340 88.410 84.850
LCQ9 106.225 111.425 112.445
KCU9 100.55 100.20 108.75
CCU9 2433 2369 2325
CTZ9 67.17 71.20 73.48
SBV9 12.42 12.77 13.00
JOU9 103.60 111.65 123.85
HGU9 270.05 281.20 278.95
Have a good day,
Mike