Commodity Corner: Morning Comments

Good morning,


DXM0  96.425  +0.475               GCQ0  1734.3  +13.6                          ESM0  3108.00  -78.00                  CLN0  37.35  -2.25


Global equity futures are correcting lower again today, following yesterday afternoon’s Federal Reserve meeting, where policy was left unchanged, but Chairman Powell did toss some cold water on last Friday’s stellar employment data, acknowledging the economic recovery will take some time. Growing fears of a second wave of the coronavirus is also putting pressure on the market.


Gold prices continue to grind back up as equites correct and pandemic fears linger.  If another asset meltdown were to take place, gold would be the benefactor.  The Fed saying rates will stay near 0%, possibly until 2022, also supports gold prices. 


Oil prices are lower today, following the DOE reporting inventories grew last week, compared to estimates for a modest decline.  Production had another downtick, but that clearly didn’t help the stocks figure.  Which brings into question the actual demand side of the equation. 


The grain markets have the WASDE report from the USDA to contend with today.  While some slight adjustments are expected, and some questions regarding exports, ethanol consumption and feed usage could get answered, the market isn’t expecting any major fireworks.  Rather, most eyes appear to be fixated on the acreage report at the end of the month.  Any major production revisions, and hence inventory changes, are more likely to be reflected in the July WASDE.  Estimates for today’s data can be found on the current data attachment.  


Initial and Continuing Jobless Claims come out shortly, along with PPI for May.  Initial Claims are expected to be +1.55m vs +1.877m last week.  Continuing Claims should be 20m, vs 21.487m last week. 


Apologies here, but I have to cut this short today.  Best of luck on all the data!  


Technical Moving Averages:

Product               50 day                100 day               200 day

SN0                      850.00                   874.75                   912.50

CN0                      324.75                   351.75                   375.50

WN0                    525.00                   534.50                   529.75

KWN0                  473.50                   475.25                   465.50

MWN0                520.25                   532.50                   543.50

SMN0                  291.5                     298.9                     305.9

BON0                   26.87                     28.33                     30.20

CLN0                    29.41                     36.88                     45.95

GCQ0                   1718.4                   1660.8                   1591.5

LHQ0                   58.245                   68.415                   78.290

LCQ0                    94.005                   98.875                   105.550

KCU0                   110.20                   111.95                   114.90

CCU0                   2350                       2491                       2482

CTN0                   56.11                     60.41                     63.48

SBV0                    10.79                     12.12                     12.66

JON0                    117.70                   110.65                   109.60

HGN0                  236.80                   243.95                   256.90

HON0                  98.30                     123.06                   155.03

XBN0                   91.16                     114.39                   144.91

NGN0                  1.990                     2.010                     2.183






Michael Clifford


141 W Jackson Boulevard                             

Ste 1065                                                              

Chicago, IL 60604                                              

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