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Commodity Currents: Profit-Taking Tuesday.

Corn fell under 783 so unless buyers return can easily see a trade to challenge 704 in the foreseeable future with Wheat also reversing under 887 putting a possible trade to 824 in play and Soybeans dropped under 1711 with a trade to 1634 not out of the question after more follow through selling as buyers take profits however Oats after falling under 387 prior session tries to retake that level today so have to see if buyers can take prices higher or will sellers try for 380. Coffee continues to wake up buyers trading up to 180.00 before pulling back somewhat so have to see if prices can hold these gains although can't rule out some back and fill action while Sugar attempts to rally but turned away from 19.74 again however this time closed over 19.42 to end with a fractional gain keeping 21.00 within reach. Despite more profit-taking in Cocoa manages to stay over 2,627 again but think it's only a matter of time until prices close under that level putting 2,520 in play. Orange Juice was squeezed lower unable to trade over 130.00 with support seen at 122.35 but Cotton headed lower trading under 75.43 putting 74.55 in reach after being rejected from 76.08 for the third time. One sided price action in Hogs as prices challenge 73.200 with 74.000 on the horizon as the growing realization the lows could be in result in short-covering and an outside day in Cattle suggests more upside potential as prices blow past resistance especially 126.525 a hallmark of fund buying after 125.525 supported earlier. Crude continues to remain stalled supported by 95.89 but capped by 97.45 closing almost in the middle keeping market participants guessing to its next move but Natural gas continues higher this time on a spike in volume as shorts scramble to cover to avoid being burned again as prices blow past 2.900 putting 3.084 remains in play. Gold floats higher to end just under 1,740 again resisting any kind of pullback for another day as support remains at 1701.60 with Silver also stalled under 34.000 as its support remains below at 32.345 although prefer a pullback to 30.725 or lower before buying in and Copper continues higher playing catch up to the other metals challenging 3.700 but closing just under that level with 3.7600 next objective with support seen at 3.6000. More holding action in equities with S&P500 turned away from 1440 but remains over 1418 in a largely directionless session with Nasdaq 100 leading the losses now under 2784.25 and looking to break under 2777.65 which could lead to 2,700.00 if the sellers return. 10yr Treasuries melt lower heading toward 132-17 and the Dollar continues on its losing ways looking to challenge another support level at 79.805 as the market assumes more stimulus is on its way.


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.