Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Commodity Currents: Which Way Wednesday?

Another whippy day in stock indices with new shorts likely cleaned out following profit-taking a hallmark of recent activity with S&P500 managing to hold 1340.00 but this time not able to challenge 1366 still trending lower as more sellers try to force the issue. Same story in 10yr Treasuries, new contract highs greeted by more sellers resulting in a poor close but prices refuse to sell off so wonder how long this can continue with support seen at 132-14. Crude held 95.00 again indicating for now a possible pause in recent profit-taking but too soon to say if prices are ready to bounce higher with 97.36 first probable upside objective. Natural gas continues its short-covering advance heading toward 2.524 before pulling back somewhat as buyers lacked resolve to chase prices higher with near term support seen at 2.355. Gold continues lower with some buying supporting at the worse levels which could limit further downside with similar buying interest in Silver supporting as prices approached 28.50. Hogs advanced for the third session on likely short covering unable to close over 85.00 so have to watch to see if the recent lows hold on a possible retest while Cattle pushes higher inching closer to 118.60. Soybean meal stubbornly held 414.50 and with Soybeans quickly approaching support at 1400 have to wait and see who leads whom and in what direction with Wheat testing 600 and Corn falling back under 613 possibly setting up to challenge 590 as both are looking lower. New contract lows in Coffee were rejected again as buyers stepped up to support resulting in a fractional gain with increasing buying participation another sign of a possible bottom in the works as what doesn't go down usually reverses direction. Indecision day in Sugar as the market reflects on recent selling holding over 20.00 but Cocoa continues to challenge and hold the 100dma 2,288 looking like it wants to move higher. Orange juice squeezed out a small gain on likely short covering following a prior rejection of new contract lows while Cotton longs were sheared again with new contract lows as prices take the path of least resistance.

DISCLAIMER:

The risk of loss trading commodity futures contracts can be substantial. You should, therefore, carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. Trading futures without protective stops or options is not recommended.