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Commodity Currents: Moving Monday.

More selling has Corn falling toward 780 as buyers cash out although can't rule out a trade to 701 and Wheat reversed lower now back under 890 with a trade to 821 also not out of the question either but Soybeans tried to rally early on but remains capped by 1745 for the third time suggesting an interim top in place with a close under 1706 could lead to 1629. Oats which had been supported by 387 closed under that level after another failed rally attempt at 391 motivated sellers which is a potential bearish development for the grain complex. Buyers woke up in Coffee sending prices exploding higher taking out several resistance levels in the process so think we have just seen validation of the June lows and if 172.20 holds on a pullback, could see a trade to 182.65 with Sugar attempting to rally but failed at 19.74 although prices did fall back under 19.49 they didn't fall too far from it which makes me wonder if an upside surprise is in order. Cocoa pulled back but buyers waited to send prices higher but still ending fractionally lower so can't rule out more profit-taking and Orange Juice pulled back after sellers didn't wait for a trade to 133.10 to slow down the advance with support seen at 121.25. Cotton was unable to stay over 76.16 to reverse lower but remained over 75.27 keeping upside possibilities alive for now. Hogs continued their advance but momentum slowed approaching 73.125 resistance as price action looks like short covering but Cattle grazed lower after turned away from 126.500 again but this time buyers were nowhere to be found when prices headed toward 125.900 raising the possibility of a fall to 124.400. Crude defied the long awaited correction for another day by staying over 95.74 although upside is remains limited by 96.84 keeping prices stalled for the time and what a difference a day makes with Natural gas exploding higher on likely short-covering forming an outside day suggesting higher prices although falling short of 2.848 so have to see if there is any follow through buying to take prices higher. Inside day in Gold experiencing some profit-taking after lofty gains with a pullback not unheard of with Silver also looking a little fatigued here rejected from 34.000 but so far no sign yet of a reversal in trend. Copper continues its sluggish advance only to be turned away from 3.700 but yet to challenge 3.6000. S&P500 pulled back after no follow through buying after new highs last session but remaining far over support seen at 1412.00 however Nasdaq 100 didn't waste time selling off trading down to challenge 2785.25 not encouraging to see the market leader leading the losses at this junction but could be simple profit-taking. Inside day for 10yr Treasuries awaiting more clues from equities before deciding on a direction and the Dollar also pauses although can't rule out a trade to challenge support at 80.00.

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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.