Commodities & Futures update

We saw a small rise in prices early in the month, but prices have dropped back since then (except for Rice). Wheat now trading near $8, Corn around the $5.80 level, and Soybeans around $13.75. Rice is now going up again.

Sugar has pulled back a bit to around .13c. Cotton continues to fall, and Coffee is up a bit.

Oil prices continue to drop in spite of hurricanes and other global events. Same for Heating Oil/Diesel and Natural Gas. Talk on the street is that a large number of hedge funds have been exiting the commodity market (some have experienced major losses as well).

Gold pulled back to the $800 level again. Silver and Copper fell as well.

Bonds continue to rise as more money flows in to the fixed income market. The 10 yr Note and the 30 yr Bond have both been up this month, partly due to a lot of uncertainty in the stock markets, credit markets, and global markets. However, some traders expect to see a top in this market soon!

This was a volatile month in the currency markets. The US Dollar Index continued to rise since most of the Financial stocks hit a bottom on July 15th, and because the Eurozone economy is now weakening. The Euro pulled back sharply based on weakness in that economy. Likewise for the British Pound which now seems to be in a freefall! Weakness also seen in the Canadian Dollar. The Yen has been both up and down for the month.

Stocks continue to rise a bit since the July 15th. bottom. See my Stock Market Blog for more details.

Note: Charts are 'live' so comments above refer to the appropriate time on the chart.

News Stories:
Why you should keep a cool head on commodities
Mexican Production Disappoints Again in July - Big Time
U.S. Natural Gas Seen to Be Superabundant
Corn rises for fourth day to three-week high
CBOT Corn Review: Tumbles On Dollar's Surge, Weather
Crops To The Rescue

Commodities Update -Jul 31st

We are now starting to see falling commodity prices, especially in Energy and the Grains. Natural Gas prices saw a huge drop this month!

Wheat has dropped to around $7.80, Corn to around the $5.80, and Soybeans to around $13.75. Rice has pulled back quite a bit as well.

Sugar was down, then back up to around .14c. Cotton and Coffee were down as well.

Oil prices have dropped sharply to around $124 from the peak of $147 in mid-July. Heating Oil/Diesel also pulled back sharply along with Natural Gas. This could be the beginning of a big correction in energy prices, with Oil possibly going back to the $110-$115 area.

Even Gold pulled back to the $900 level again. Copper fell to $3.70 after spiking up to just over $4.00.

The 10 yr Note and the 30 yr Bond have been both up and down this month with a lot of uncertainty in the markets.

The US Dollar Index has been rising since the Financial stocks seemed to hit a bottom on July 15th. The Euro started pulling back from the $1.60 top. Likewise for the British Pound after hitting $2.00. The Yen is also showing weakness; same with the Canadian Dollar.

Stocks have been rising a bit after the Financial stocks seemed to hit a bottom on July 15th. See my Stock Market Blog for more details.

Note: Charts are 'live' so comments above refer to the appropriate time on the chart.

News Stories:
Oil Market BreakDown!
CRB - Commodities Ring Bearish
Second Worst Month For Commodities Ever!
Grain Outlook: The Summer Price Slide
Corn tumbles to more than seven-week low
Corn, soybeans fall by maximum as crude tumbles

Commodity Update -June 30th

This month we close out the 2nd quarter with continued signs of inflation as most commodities continue to rise after the recent pullback. Just look at the CRB commodity index continuing to hit new all time highs (20 year chart)!

Wheat is on the rise again, now trading at around $8.50; we don't really have the problems that we had last year, so we'll see if this price holds up. We saw a big run up in Corn to around the $7.60 level, and Soybeans to around $16.00, mainly based on weather issues. No real change in Rice.

Sugar is also rising with the last trade at around 12c. Cotton and Coffee also on the rise. I guess everything is rising!

Oil prices hit $142 -lots of media talk about speculators driving up prices. Heating Oil/Diesel is flirting with the $4.00 level. Natural Gas is now trading up to the $13.40 level (I mentioned it in the last post).

Gold surged past the $900 level again after the Fed meeting and the subsequent drop in the US Dollar. Copper rose to $3.88.

The 10 yr Note and the 30 yr Bond recovered somewhat as investors fled the stock market, looking for a safe haven. FYI: Bonds are not a safe haven!

The Euro still seems to be in a trading range near $1.56. Likewise for the British Pound, and the Yen; the US Dollar Index fell a bit further after the Fed meeting. The Canadian Dollar is about even with the US Dollar.

Stocks did in fact break down (as indicated in my previous post), and had the worst June since 1930! See my Stock Market Blog for more details.

Note: Charts are 'live' so comments above refer to the appropriate time on the chart.

News Stories:
Oil prices top record $142 dollars
Corn’s underwater rally
Wheat Rallies Again
Wheat Rises for Third Day as Dry Weather Forecast for Australia

Commodity Update -May 31st

Oil prices finally broke down from the recent top at $135, seeming to take down most commodity prices as well. The US Dollar is in somewhat of a rally mode, helping to push prices down.

Wheat prices are flat after the recent drop, still trading at around $7.50. Likewise for Corn -still holding up around the $6 level, and Soybeans at around $13.50. Rice continues to pull back.

Sugar did in fact make it back down to the .10c area where it is currently trading. Cotton dropped below 70 to close around 66c. Coffee is in a trading range between 1.30 and 1.40.

Oil finally pulled back to $126 area; Heating Oil/Diesel pulled back as well. Natural Gas closed just over the $11.50 mark -keep your eye on this one!

Gold pulled back again, this time to close around $880 -I'm still expecting another pullback in Gold before resuming the long term up-trend. Copper dropped as well.

The 10 yr Note and the 30 yr Bond finally broke down, indicating higher inflation/interest rates.