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Commodity Currents: The Monday Commodity Movers.

Stocks fell out of bed dropping under 1373.00 but held 1360 after buyers supported prices on the lows while a close under 1360 could bring in more selling so have to stay tuned with a similar recovery seen in the Mini Dow when buyers supported at 12,800 with 12,912 the upside number to watch in the YM and 1372 in the ES. 10yr Treasures peeked over 132-00 but backpedaled toward the close so have to wait and see if this move is sustainable or if its a great place to consider selling, for now near term support can be seen at 131-18. The Dollar recovered somewhat but unable to make significant upside over 79.50 and 79.67 ending back under 79.50 just no motivation to buy dollars at these levels. Gold dropped toward 1620 with buyers supporting again but what is noteworthy is lack of upside namely over 1660, Sliver fared worse falling below 31.000 as 32.000 continues to limit further advance probably taking its cues from the reversal in Copper rejected from 3.7000 falling through 3.6500 back to 3.600 to try to move higher again? Crude slipped away from 104.00 again with buyers supporting at 102.00 to get a close roughly in the middle keeping market participants guessing as to the next move. Almost a 5 percent gain in Natural Gas out of nowhere retaking 2.000 with an increase in volume suggesting there could be more to this move, have to see if prices hold 1.9700 on pull back if so next upside target could be 2.080. Hogs continued to trend lower although new lows were rejected resulting in a gain but no real signs of a change in trend either whereas Cattle traded south of 114.000 but new lows were rejected only by small margin however. Reversal of fortune in the grains with Corn closing higher falling short of 613 whereas Wheat fared better closing over 627 with 641 the next objective if can builds on gains. Soybeans tried for the 2nd session to exceed 1460 but failed again although need to see a close under 1418 before considering the up trend over. Indecision day in Coffee as buyers and sellers think about what to do next as 175.00 supports but 180.00 limits, Cocoa fell from the 100dma again back under 2,200 in an border line day suggesting a trade to 2150 with Orange Juice longs getting squeezed as prices fell through 145.00 with sellers not waiting for a trade to 155.00 have to see if 140.00 holds or will new lows follow? Cotton ended with gains as buyers supported at 90.73 sending prices to their best levels of the day shy of 93.00 with 94.00 next upside target.


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.