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Commodity Currents: Wrong Way Wednesday.

Coffee longs had a change of heart stepping back unable to push prices through 168.50 although 164.00 should contain any downside tests with Sugar souring falling short of 20.64 as sellers returned to send prices back under 19.93 putting 19.50 within reach again. A similar rejection of 2,600 in Cocoa could result in some profit-taking as support remains much lower around 2,450 with Orange Juice also advancing albeit temporarily exceeding 114.50 but falling short of its next objective at 120.00 but as prices remain over 115.25 could make another move toward 120.00 and Cotton held 75.47 and is moving higher with 80.81 still the longer term upside objective. Buyers returned to the grains sending Corn over 809 challenging 815 as new highs are not out of the question deferring to another day that long awaited correction in particular buyers were looking for Wheat sending prices back over 900 and as long as 898 and 894 hold prices look destined for higher pasture. Soybeans bounced off 1716 prompting buyers to take prices to new highs so don't think this move is over. Oats also advanced after holding 382 and closing within 5 cents of new highs as well so for now the trend looks higher. Outside day in Hogs suggesting an interim bottom is in place as buyers didn't wait for a retest of 72.00 before sending prices reversing strongly in the other direction to close at the best levels of the day right under resistance at 74.025 as 75.175 remains next objective with Cattle grazing higher exploding over several resistance levels at 124.675 and 125.125 on a spike of volume to challenge 126.100 looking like the lows were set here as well. Crude slips lower after being turned away by 96.35 for the 2nd time as support remains at 94.46 with a close under that level taking prices to 92.65 and a key reversal Natural gas as buyers returned when prices traded to 2.6100 about four cents over my target so this might be the bottom I have been looking for although prices need to retake 2.757 but with more buyers it could do just that. More profit-taking in Gold in an otherwise quite session but 1654.10 held (LOD 1654.40) as buyers are supporting so it might be a while before prices pull back to 1630.40 with Silver also pulling back but staying over 30.535 for the third time but Copper headed in the other direction falling under 3.4575 but supported by 3.4210. Nothing new in equities with S&P500 marking time floating between 1410 and 1402.50 not doing much else in the meanwhile as Nasdaq 100 manages to stay over 2777.20 but that's about it as waiting remains the theme for another day. 10yr Treasuries continue to bump along but unable to exceed 133-30 as support remains 133-12 but the Dollar tries to advance after holding 81.375 as prices face their first challenge at 81.80 then 82.00 so the path higher remains challenging.

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. Past performance is not necessarily indicative of future results.