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Commodity Currents: Light Selling Friday.

Stocks tried to end the week with a strong finish but that wasn't the case as traders sold into strength sending the S&P500 to the lows but remained over 1315, now new support in a pre-memorial day session. If stocks can hold gains, next upside objective is 1345-1350 area. However Nasdaq 100 sold off still unable to advance beyond 2539 with downside support seen at 2496. 10yr Treasuries headed in the other direction trading back over 133-19 resistance putting new contract highs within reach again defying expectations of turning lower for another day. The Dollar remains over 82.50 again although it's looking a bit fatigued at these levels but so far buyers are still in control with 81.77 seen as near-term support. Gold floated higher on light buying managing to close over 1566 with 1600 next level as Silver continues to build on its gains after closing back over 28.000 with 29.000 next upside target. Crude continues to remain in neutral with another inside day as the market debates where to go from here with 92.00 next upside for buyers and sellers hope to get a close under 89.00 whereas profit-taking slowed down Natural gas closing under 2.700 but with buyers supporting at 2.573 keeping losses in check so have to see how committed buyers remain. It was separate ways in the grains with Corn initially selling off only to recover to close unchanged but with contract lows within reach whereas Wheat headed in the other direction supported at 660 but unable to close over the 200dma at 681 with Soybeans still bumping up against 1385 and an inside day in Soybean meal capped by 415 on the upside and 402.5 on the downside. Another inside day in Coffee with either buyers or sellers willing to make any major moves keeping prices confined in a five cent range 165.00 to 170.00 whereas Sugar hugs 19.60 not able to make any upside far from its nearest resistance at 20.15 suggesting more downside is possible. An outside day in Cocoa suggests another leg lower toward 2,050 with Orange juice able to stay over 108.00 but that's about all it was able to do and Cotton floats toward 76.00 its near-term 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