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Commodity Currents: The Week In Review.

Sep. 30, 2012 2:36 PM ET
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Corn popped as buyers didn't wait for a challenge of 697 before sending prices higher but still have resistance at 790 to deal with while Wheat actually closed over its resistance at 900 as buyers return expecting higher prices with support still unchallenged at 827. Soybeans looked weak bouncing the least as buyers are still not convinced to chase prices higher with resistance seen at 1678 support at 1536 and Oats continue lower heading toward 356 as buyers remain indifferent with respect to the other grains movement with resistance still at 385. Coffee managed to stay over 169.75 for the 2nd week but trending lower as buyers remain unmotivated with resistance seen at 183.35 in largely range bound trading with Sugar unable to make much upside progress stalling at 20.73 but holding over 20.00 for now anyway but longer term could see a challenge of 18.34 unless buyers can take the initiative. Cocoa slips a little falling under 2,519 after a failure of 2,600 suggesting a trade to 2,357 is likely as sellers get motivated as well as taking profits with Orange Juice getting squeezed under 117.85 support putting 111.00 in play after being soundly rejected from 133.60 with Cotton falling under 72.58 breaching 70.81 now likely looking for 66.15 as buyers remain nowhere to be found. Hogs reversed direction after approaching 76.225 but holding over 73.025 for now so have to see if buyers will continue to support whereas sellers sent Cattle lower although prices held over 124.575 but a trade under 124.300 could invite more selling. Crude traded below 91.22 printing 88.95 before bouncing higher while encouraging do not think we have seen the low with 84.60 still possible as price action looks more like short-covering with resistance at 95.00 however Natural Gas powers higher in a textbook bounce off 3.026 taking out 3.213 with little effort as buyers return putting 3.576 in play although the higher prices go the greater the chance of profit-taking. Gold remains stalled under 1,800 unable to move higher but buyers still remain supportive at lower levels preventing a much needed pullback to 1,697.50 with a similar performance in Silver halted at 35.000 but supported at 33.200 with more under that level limiting downside but Copper pulls back a little able to remain over 3.7425 after buyers supported at 3.6890 keeping upside possibilities alive. Stocks pulled back with S&P500 heading toward first level support at 1418.00 as prices float off the recent highs under profit-taking following the tech heavy Nasdaq 100 lower as that index challenges its support at 2776.40 and if this level fails expect more selling in equities. 10yr Treasuries zip right back to their highs but falling short of contract highs again and we have seen this before, too high to buy but refuse to significantly sell off so there are better opportunities elsewhere and the Dollar shows some sighs of life by advancing over 80.00 with its work cut out for it as next upside objective to challenge is 80.50.


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 indicative of future results.

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