Commodity Blog

Archive for November 20th, 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.

Latest commodity prices (ICE, NYMEX, CME) as of 19:11 GMT:

Oil (Brent) — $77.27
Gold — $1,143.65
Silver — $18.36
Palladium — $362.00
Platinum — $1,429.83
Copper — $6,845.00
Aluminum — $2.056.00
Nickel — $16,750.00
Zinc — $2,256.00
Cocoa — $3,245.00
Sugar — $22.45
Corn — $393.25
Soybean — $40.00

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.