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,
Mike
Michael Clifford
141 W Jackson Boulevard
Ste 1065
Chicago, IL 60604
Trean Group, LLC
312-604-6404