commodity Corner: Morning Comments

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,