Booy’s #Commodities #60SecUpdate #32

60-second update picture

METALS

The most striking aspect of the US’s exit out of the JCPOA is not the impact on Iran, but on the relationship between the US and the rest of the world powers, namely EU, Russia and China. Meanwhile, North American Gold ETF’s inflows are at the highest in 7 months.  There are also mining production drops for gold and PGM’s in South Africa.  Palladium finds support from tension with Russia to which the Middle-East mess isn’t helping.

ENERGY

* Oil: Iran says exports won’t be significantly affected thanks to continued work with Europe and Asia. US storage showed a 2.2M draw vs -0.7M exp. 

* NatGas: spiked over an injection of 89Bcf vs 91 exp., showing unexpected bullish energy for small news.

GRAINS

WASDE showed a perfect QRS on the Corn and Beans “electrocardiogram” with prices spiking for a “beat” before returning to normal.  The biggest surprise was the drop in world ending stocks for Corn as China continues to empty its national reserves (159M mt vs 186 exp.!).  Global stocks were down in Beans and Wheat also.  US Beans ending stocks were also lower to 415M bu. from 460 prev. and 535 average exp.  Overall storage levels are still good, but the trends are changing.

SOFTS

* Cotton: USDA increased the US 18/19 ending stocks  while lowering production due to the drought. Exports unchanged. Global stocks were also marginally lower.

* Coffee: recent projection has Brazil’s production at 55M bags. 

* Cocoa: chart shows reversal potential, but with indecision.  Rain in W. Africa’s forecast is positive for production 

* Sugar: you can add China to the list of over-producing global suppliers.  Bears in control.

LIVESTOCK

USDA lowered 2018 meat production while increasing total production for 2019 and expects strong US exports next year.

 

 

 

To subscribe only to this update, click here: http://booyinsights.com/subscribe

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s