Booy’s #Commodities #60SecUpdate #36

60-second update picture

Booy Icons_Gold   

METALS

Weaker reaction by precious metals to the truce, while Copper and Palladium were stronger.   Stronger equities and a general “risk-on” market will support industrial sector. The exception is Platinum, which in our estimate will trade more and more like a precious metal, as its demand for industrial use tied to diesel cars will continue to diminish.

Booy Icons-Crude 

ENERGY

* Oil: reversed early gains.  The Venezuela situation is still negative, but less uncertain. 

* NatGas: continues its choppy climb upwards, supported by rising temps and much lower stocks than last year.  However, plenty of rigs out there ready to frack.

 

Booy Icons-Corn 

GRAINS

A truce is good enough to shoot soybeans up by 20 cents at the open.  The rest are following.  Today’s market will work on digesting the news.  This may be a window for Chinese importers to speed up purchases and front-load their needs ahead of future challenges to the truce. Especially relevant in light of cuts to its own soybean production for the first time in over a decade.    This afternoon’s Crop Progress report expected to show around 80% done in corn and 50% done in beans.

Booy Icons-Coffee  

SOFTS

* Cotton: benefits from the truce. Rain expected this week, but not much after that. It’s at the highest level in four years!                     

* Coffee: big crops (add Mexico and Colombia) are being priced in, while risky weather hasn’t yet.  June-July could get interesting.   

* Cocoa: weaker tone continues overnight, yet tech support levels are nearby.

* Sugar: the rebound continues, helped by a weaker BRL, for the first time in the last seven sessions.

Booy Icons-Cattle

LIVESTOCK

Traders will position for Cold Storage Report out today, after market close. Cattle on Feed report this Friday at 11:00AM due to Memorial Day Holiday.

 

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Abbreviations:  bbl = barrels; BRL = Brazilian Real; CoT = Commitment of Traders report; K = 1,000; MoM = Month-over-Month; Px = price; USD = US Dollar; YoY = Year-over-Year; YTD = Year-to-Date.

 

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