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Commodity Currents: Trending Thursday.

Coffee continues to grind lower approaching a support area 160.00 although a test of the June lows around five cents lower can't be ruled out either as buyers stay on the sidelines with sellers showing less willingness to sell with Sugar also approaching 20.00 with selling momentum starting to slow as well as contracting daily ranges but still trending lower as near term resistance is 20.78. Cocoa which was trading around 2,500 experiencing consecutive inside days made up its mind by selling off dropping under 2,438 putting 2,376 within reach with more support seen around 2,300 as profit-taking slows the advance which is what you expect to see after an extended move. Orange Juice built on previous gains trading to 130.00 and with new support at 124.50, next stop could be 142.00-142.20 area and Cotton remains content to do very little remaining largely range bound between 71.54 and 73.95. Corn floated over 805 after holding 799 looking like it still wants to move higher but price action was quite subdued with Wheat playing catch up although buyers were turned away from 892 resistance and with 900 over that, upside progress will be difficult with near term support seen at 824. Soybeans which had blown through 1614 previously reversed lower but staying over said level so for now just thinking about future prospects as support remains at 1550 and 1512 with Oats which has been largely sideways trading between 360 and 400 advances over 377 resistance with 390 in sight. Crude drives higher with 93.51 in the rear view mirror now looking ahead toward its next upside objective of 97.35 with near term support seen at 93.75 whereas Natural gas reversed lower after another failed upside attempt was rejected from 2.839 to send prices under near term support now challenging 2.671 with more selling interest suggesting additional downside from these levels. Hogs continued to sell off closing on the lows now under 75.850 although with less selling conviction this time so have to see if sellers can take prices to the next support around 3 cents lower and Cattle was fenced in by 126.805 resistance resulting in profit-taking sending prices to probe 125.655 with more support at 124.00 which should contain prices should the selling continue. Gold tested and bounced off 1600 again and tried to rally but its advance was slowed by 1620 again although prices did close over 1615 with Silver also advancing over 28.040 with 29.000 next upside level although buying convicting is lacking with Copper also moving higher closing just under 3.3875 with more resistance over that to work through. S&P500 floated higher after briefly testing support of 1401.75 keeping an underlying bid under equities as new highs remain within reach with the tech heavy Nasdaq 100 also racing higher toward 2800 as support remains a distant 2730.95. 10yr Treasuries reversed lower after trying to stage a recovery but turned away from resistance at 132-19 with 132-00 now within reach. Outside day in the Dollar after prices closed in on 83.000 but were soundly rejected sending prices under 82.50 a short-term negative development now putting 81.875 within reach.

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. Past performance is not necessarily indicative of future results.