This is a weekly recap on the Precious Metals sector, specifically the Gold, Silver, Palladium and Platinum markets.
If it had not been for Wheat, human beings may never have socially and culturally developed as cosmopolitan as we have. Wheat was the first crop to be cultivated on a grand scale and stored long-term, enabling the start of city-based societies and the dawning of civilization.
Canola is a genetic variation of rapeseed developed by Canadian plant breeders specifically for its nutritional qualities and its low level of saturated fat. The term Canola is a contraction of “Canadian oil.”
March corn is now trading above $4.50 and has stopped us out of our short position from $4.25. While I remain bearish on corn prices for 2013/14 and 2014/15, you can’t deny these low US corn prices have spurned demand from exports, ethanol and animal feed.
The USDA released their February WASDE report this morning (February 10). The February report is not normally a big market mover and the report followed suit as there were a few surprises, but not enough to get the corn, soybeans or wheat markets above resistance levels or below support levels…yet.
Today (Tuesday Feb 04) the E-Mini S&P 500 either bounced on oversold conditions, or this could be support for another run to the highs! This week is full of vital numbers. Market direction may simply be a product of data and earnings at this point.
It appears the cash corn trade has come to a standstill over recent weeks as weather and lack of a selling catalyst has spreads and basis tightening. I want to point out the performance of the March contract against the other contracts in the 2014 crop year over recent months.
Like its name suggests, Heating Oil is almost exclusively used as a flammable, liquid petroleum product for furnaces and boilers. Heating Oil is a heavy fuel oil that is derived from Crude Oil.
The Dow Jones Industrial Average (DJIA) is often viewed as a strong indicator of the success of the U.S. stock market and the U.S. economy overall. The DJIA represents nine economic sectors including financial services, technology, retail, entertainment and consumer goods. The DJIA is one of the most widely quoted measures of the U.S. stock market due to its extremely high correlation to broader U.S. indexes, such as the S&P 500.
The grain data came fast and furious all day! It started with Brazil forecasting their production this morning, followed by the USDA giving us their take on everything but old crop supplies (those will come in the JAN report). While the results of today’s report may have not inspired much volatility at 11 am, I did notice a few things that may become trends over what is left of 2013 and the start of 2014.