The technical analysis, that includes the indicators’ data and major pivot points for Brent Oil, Gold, Silver and Copper as traded on spot market as of November 21st 2009:
Wheat futures slid for the third day as demand for U.S. grain waned because of increasing global inventories. Analysts predict that prices likely will be constrained in the coming six months as growing global supplies cause lack of demand for U.S. wheat. March futures for wheat delivery slid $0.055 (0.9 percent) to $5.785 per bushel as of 10:37 on CBoT.
Gold prices jumped on expectation that the dollar will fall, raising demand for the metal as an inflation hedge. The greenback reached a lowest level in 15 months versus a basket of six major currencies on November 16th. But the U.S. currency gained today as much as 0.8 percent. December futures for gold delivery added $2.30 (0.2 percent) to $1,144.20 by 12:33 on the Comex division of the New York Mercantile Exchange.
This short commodity trading video, featuring a technical analysis of a spot gold chart, implies that the current bullish state of the gold market is to last at least until $1,300 is reached. The author of the video also talks about strong pull-backs that are inevitable during such fast and long-lasting growth as with the gold. These pull-backs aren’t dangerous for the overall upward trend but can be used by the traders as the better entry points into this market.
Sugar futures dropped to the lowest level in two weeks as the dollar gained, diminishing the attractiveness of commodities as an alternative investment. The dollar put a great investor-selling pressure on sugar. March futures for raw-sugar delivery dropped $0.0056 (2.4 percent) to $0.2274 per pound on ICE Futures U.S. in New York.
Copper prices slid to the two-week low after the dollar rose, eroding demand for the metal as an inflation hedge. It looks like commodities are reacting to the dollar more than anything these days. March futures for copper delivery lost $0.0295 (0.9 percent) to $3.106 per pound on NYMEX.
Soybean prices may increase by 20 percent as of March with economic growth in China, the largest importer in the world, spurring demand. Soybean imports in China may exceed 3.5 million metric tons by November because of lower costs. Soybeans reached a three-month high yesterday and have rose 4.6 percent this year.
Corn price surged to the highest level since June and soybeans gained, continuing the three-month rally, as the weaker dollar pushed up demand for commodities. Weak dollar creates an upward momentum for commodities in the market as speculators seek alternative assets for investment to preserve their purchasing power. March futures for corn delivery gained $0.0625 (1.5 percent) to $4.2375 per bushel by 10:00 on the Chicago Board of Trade.
Cattle futures dropped after the report that export demand for U.S. beef fell. Exports declined 20 percent to 162.4 million pounds in September from a year earlier. There is no demand for beef priced at current level, partly because of the global recession. February futures for cattle settlement dropped $0.005 (0.6 percent) to $0.8515 per pound as of 10:13 on CME.
Sugar futures slid after U.S. equities fell and the dollar strengthened today. The dollar rose 0.8 percent versus a basket of six major currencies. The Standard & Poor’s 500 Index dropped 0.4 percent, signaling that the global economic rebirth may be slow, eroding demand for higher-yielding assets. March futures for raw-sugar delivery slid $0.0016 (0.7 percent) to $0.2307 per pound by 10:07 on ICE Futures U.S. in New York.
Wheat futures gained, touching the highest level in four months, on forecast that heavy rains will slow U.S. planting more then expected. Analysts says that trend for the wheat are definitely going to be bullish as delayed harvest means smaller crop and smaller stocks next year. March futures for wheat delivery gained $0.03 (0.4 percent) to $5.8625 per bushel as of 10:57 on CBoT.
