Commodity Corner: Morning Comments

Good morning,


DXU9  96.855  +0.002                       GCQ9  1420.1  -3.2                                                                   ESU9  2985.25  +0.25                      CLQ9  57.10  +0.32


The equity market enters the US session a touch lower, recovering from earlier losses in Asia and Europe.  The support for equities came from a stronger than expected retail sales report in the UK.  Gold traded higher overnight, but has rotated back to levels just below yesterday’s settle.  A ringing endorsement from Ray Dalio to diversify investment portfolios with adding gold certainly helped the precious metal.  Oil prices are recovering, after being hit hard the past few sessions.  News of Iranian forces seizing a fuel vessel allegedly smuggling fuel was the impetus for the price rise. 


Grain markets are trading lower today, in spite of the excessive heat wave sweeping across the middle of the US from now into this weekend.  The heat was preceded by rains, in part from Barry, that are thought to be able to provide some help to the crops, ahead of the heat.  Wheat prices are lower today, as rains for spring and Canadian wheat crops should also help them before hot and dry weather next week.  Harvest is taking place for winter wheat, which is also applying some pressure to prices.  Paris wheat, also undergoing harvest, is reporting big yields, but low protein levels. 


Cotton traded to a 3 year low yesterday, as reduced demand concerns with the trade talks struggling to make progress, presses prices down.  Sugar prices continue to trade down, close to a 9 month low, on large supply concerns.  A huge delivery of sugar taking place this week has depressed prices.  Coffee prices are inching back down today, having rallied yesterday on concerns about stress to the crops with the cooler temperatures expected to return to Brazil.  Hog prices remain depressed, even with the ongoing talk/concerns that the African Swine Fever epidemic is even worse than what has been advertised.  The large reduction in available hog supply should be a boost to prices.     


Technical Moving Averages:

Product               50 day                100 day               200 day

SX9                       894.00                   908.25                   924.75        

CZ9                      431.25                   410.75                   405.75

WU9                    505.00                   486.00                   514.25

KWU9                  454.50                   451.00                   497.00

MWU9                549.25                   550.00                   572.75

SMZ9                   317.3                     316.8                     319.2

BOZ9                   28.28                     29.13                     29.65

CLQ9                    57.81                     59.60                     58.89

GCQ9                   1348.5                   1326.8                   1302.4

LHQ9                   84.420                   88.475                   84.880

LCQ9                    106.170                 111.215                 112.350

KCU9                   101.40                   100.25                   108.70

CCU9                   2436                       2371                       2329

CTZ9                    66.53                     70.89                     73.28

SBV9                    12.39                     12.71                     13.00

JOU9                    104.00                   111.00                   123.10

HGU9                  269.40                   280.55                   278.75


Have a good day,




Michael Clifford


141 W Jackson Boulevard                             

Ste 1065                                                              

Chicago, IL 60604                                              

Trean Group, LLC