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Commodity Currents: Trading Thursday.

Short covering rally in stocks kept prices on the move as the new sellers were likely taken out when prices held relative support at 1350 in S&P500 but the overall trend still looks lower with near term support at 1344.50 and resistance of 1370. Sellers finally got their way in 10yr Treasuries while no new highs but prices are still supported at lower levels as buyers defend 132-16 with a close under 132-00 necessary to negate the short-term outlook. Inside day for Gold as buyers were supportive on the low again but that's about all they did as prices were unable to retake 1,600 so can't rule out a trade to 1,550 whereas border line day for Silver after recent losses with buyers supporting at 29.00. Copper held 3.6515 again and attempted to rally but sellers waited at 3.7120 to hold gains in check. Crude tried to advance but was turned away from 97.33 resistance with support still seen at 95.00 keeping prices confined for the time being whereas Natural gas was stopped by 2.519 again but that could change with new buyers and/or more short covering with support seen at 2.355 which if holds could be an ideal place to buy. Profit-taking in Cattle pared recent gains but prices should be supported at 114.75 to 115.00 if this move has upside potential whereas inside day for Hogs after recent short-covering gains as the market consolidates. Split decision in the grains with new lows in Corn after falling under 590 with a spike in trading volume suggesting more downside, Wheat fractionally higher and Soybeans headed in the other direction challenging 1458. Coffee perked up closing over 178.00 again with sellers conspicuously absent increasing the likelihood of a successful close over 180.00 to challenge 183.00. Indecision day in Sugar as prices were turned away from 20.70 but with a higher low although price action looks like short covering with 20.00 a likely support area. Cocoa consolidates between 2,300 and 2,350 staying within reach of 2,371 with likely short covering in Orange Juice taking prices close to resistance at 125.70. Not a good day for Cotton as prices trade to new contract lows with new selling present with 80.00 near term support.

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.