Commodity Update -April 7th

The commodity markets have turned around since March 23rd and seem to be heading back up again, with strength in the Energy complex, Copper, and Corn; also with help from the weak US Dollar.

Grains

Wheat prices continue to fall and may find support in the $8-$9 area; we are still tight on supplies. Corn continues in a new uptrend (after a pullback in March), based on the lower acreage data from the crop planting report. We could see even higher prices if the weather doesn't co-operate. Soybeans sold off a bit based on that same report, with increased acreage planting reported.

Softs

Sugar seems to be basing out in this area after dropping from its high in early March. Likewise for Cotton and Coffee.

Energy

Oil is heading back to the $110 area, while Natural Gas is also heading back up to the previous high we saw in March. Likewise for Gasoline and Heating Oil (diesel) -bad news for the truckers.

Metals

Gold looks like it wants to drop to the mid $800 area. We also saw a pullback in Silver. Copper is heading back up to the previous high we saw in early March.

Bonds

The 10 yr Note and the 30 yr Bond are starting to fall (yields rising).

Currencies

The Euro seems to be heading higher again as the US Dollar falls, while the British Pound appears to be weakening. The Yen also lost some ground. The US Dollar seems to be consolidating here in a trading range.

Stocks have been inching higher, though we continue to see some volatility. 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:
Examining the USDA Crop Report
Corn futures rise on farming forecast
Corn hits $6 a bushel on tight supplies
Soybeans Lock Limit Down on March 31 USDA crop report
How safe are our Canadian banks?