Commodity Blog

Archive for July, 2010

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 July 31st 2010:

Gold gained today on speculation that low prices would encourage investors to buy the precious metal. Most analysts say that the decline of prices is temporary and may end soon. It can be considered a good buying opportunity for long-term investors. December futures for gold delivery advanced $6.10 (0.5 percent) to $1,177.30 per ounce on COMEX.

Corn and soybean prices went up today as demand for supplies from the US grew after drought and high temperatures harmed crops from Germany to Russia. Grain output in Germany estimated to drop as much as 11 percent, from 49.6 million metric tons in 2009 to 44 million this year. Drought hurt crops across at least 10.3 million hectares (25.5 million acres) in Russia, causing the government to declare emergencies in 27 crop-producing regions. December futures for corn delivery went up $0.0775 (2 percent) to $4.015 per bushel on CBoT. November futures for soybean delivery rose $0.1175 (1.2 percent) to $9.9975 per bushel as of 10:32.

Latest commodity prices (ICE, NYMEX, CME) as of 16:23 GMT:

Oil (Brent) — $77.36
Gold — $1,178.20
Silver — $18.01
Palladium — $493.00
Platinum — $1,563.03
Copper — $7,288.00
Aluminum — $2,165.00
Nickel — $21,065.00
Zinc — $2,007.30
Cocoa — $3,078.00
Sugar — $19.49
Corn — $401.50
Soybean — $997.50

Crude oil gained today after weaker dollar and improving confidence in economic growth increased appeal of the commodity. Initial unemployment claims in the U.S. decreased to 457,000 in the week ending July 24 from the previous week’s revised figure of 468,000. Unemployment in Germany also decreased, falling by 20,000.

The weaker dollar spurred commodity prices. Extensive buying of energy commodities by investment funds also bolstered oil prices.

Positive news from financial markets drew attention away from potentially negative factors. Among such factors are increasing inventories and imports of crude oil in the U.S. Increasing supplies also may show negative influence in the future. OPEC output grew by 80,000 barrels (0.3 percent) to an average 29.24 million barrels per day.

September delivery for crude oil rose by $1.37 to $78.36 per barrel on NYMEX. Prices were up 3.6 percent this month.

Latest commodity prices (ICE, NYMEX, CME) as of 20:13 GMT:

Oil (Brent) — $77.65
Gold — $1,168.25
Silver — $17.59
Palladium — $483.00
Platinum — $1,560.27
Copper — $7,252.00
Aluminum — $2,092.00
Nickel — $20,700.00
Zinc — $1,980.30
Cocoa — $3,030.00
Sugar — $19.50
Corn — $379.50
Soybean — $1027.75

Gold gained today in New York after the prices touched the lowest level in almost three months, boosting appeal of the precious metal. Some economists say that glorious days of gold are over and it’ll be long time before we’ll see another surge of the prices. Other experts insist that the current decline is short-term and the prices will rally again in a month or two. In the latter case, the current low prices may be considered as buying opportunity.

The main supportive factor for gold prices is demand in Asia, particularly in China and India, which grew after prices fell. There are some religious holidays in India by the end of August, which may possibly fuel demand for gold jewelry.

December futures for gold delivery gained $1.80 (0.2 percent) to $1,163.60 by 11:05 on COMEX. Futures dropped yesterday as low as $1,160.80 per ounce, the most in more than three weeks, as a rally in global stocks damped demand for gold as an alternative investment.

Latest commodity prices (ICE, NYMEX, CME) as of 17:39 GMT:

Oil (Brent) — $75.74
Gold — $1,161.04
Silver — $17.47
Palladium — $467.00
Platinum — $1,534.99
Copper — $7,168.00
Aluminum — $2,069.00
Nickel — $20,450.00
Zinc — $1,955.00
Cocoa — $3,022.00
Sugar — $18.87
Corn — $375.50
Soybean — $1012.75

The author of this commodity trading video sees a shorting opportunity in the ongoing rally in the wheat market. He uses techniques developed by Larry Williams to prove his point and offer some basic trading plan to you. The whole analysis is based on a few simple technical chart indicators.

Corn and wheat advanced today on concern that drought in Russia may curb supplies and prompt traders to turn to U.S. crops. The harvest expected to be below 80 million metric tons and some analysts reduce their forecasts even below 70 million tons, while previously forecasts promised the harvest to be above 85 million tons or even above 90 million. Low supplies may cause Russian government to restrict exports of crops.

Chad Henderson, a market analyst for Prime Consultants Inc. said:

The Russian crop problems are not just about wheat. The trend has shifted from rising inventories to declining supplies.

With decreasing supplies from Russia, traders may shift their attention to U.S. crops. U.S. the largest exporter of corn and wheat, while corn is the biggest U.S. crop.

December futures for corn delivery gained $0.0225 (0.6 percent) to $3.8025 per bushel on CBoT, after touching yesterday the lowest level since July 1. September futures for wheat delivery went up $0.0525 (0.9 percent) to $5.9475 per bushel as of 10:19.

Latest commodity prices (ICE, NYMEX, CME) as of 15:58 GMT:

Oil (Brent) — $76.02
Gold — $1,160.81
Silver — $17.59
Palladium — $467.50
Platinum — $1,537.68
Copper — $7,055.00
Aluminum — $2,060.00
Nickel — $20,500.00
Zinc — $1,907.00
Cocoa — $2,981.00
Sugar — $18.70
Corn — $365.75
Soybean — $998.00