Closing Commodity Comments For 4-16-12

 Precious Metal Futures-- The precious metals today finished lower to unchanged across the board with gold finishing down 9 dollars an ounce to close around 1, 651 while silver futures finished unchanged for the trading day which is very rare and has not happened in a long period of time settling at 31.38 an ounce. Copper futures also finished unchanged rallying from early losses of over 500 points to finish at 363.35 a pound and I still believe is continuing its bearish trend even though it did rally sharply from session lows today. The European problem along with a Chinese slowdown could impact silver and gold prices and already has impacted copper prices with China consuming 40% of the world's entire copper supply which is an amazing figure, while the United States 10 years ago consumed 30% of the worldwide copper but now consumes much less than it used to before the financial crisis of 2008. The tricky situation here is if we do run into a European crises I believe that most commodity prices will head lower, however gold prices could go higher or lower due to the fact that there could be a flight to quality making prices rally or there also could be liquidation of gold to come up with liquid cash and be able to stay in other markets that are selling off like what happened in 2008 when gold sold off with the crisis but then in 2011 rallied sharply during the crisis. . If you are looking for a futures broker feel free to contact Michael Seery at 800-615-7649 and he will be more than happy to help you with your trading.

There is a substantial risk of loss in futures, futures option and forex trading. Furthermore, Seery Trading is not responsible for the accuracy of the information contained on linked sites.

 

Grain Futures-- The grain futures closed sharply lower this afternoon in Chicago with soybeans leading the charge downward finishing lower by $.16 cents to close at 14.21 a bushel basically ending at the same price it opened at while wheat futures finished down another 9 cents in the July contract finishing at 6.21 creating a new five month low and looking to break the $6.00 dollar level in the next couple trading sessions. July corn futures were down 9 cents heading towards pre-report levels around the 6.02 area which is the next support and if that level is broken you’re looking all the way down to about 5.90 a bushel. In my opinion I am very bearish corn and wheat for I believe there are huge supplies coming this fall in the corn market while wheat futures have the largest supplies since 1986 when prices dropped all the way down into the low $2.30 level, I do not believe wheat prices are going that low, however I do think they could go back to the 2010 lows of around $4.50 a bushel. Rough Rice futures continue their bullish momentum finishing up another $.11 cents in the May contract closing at 15.42 a bushel while May oats finished down another 5 cents to close at 3.22 continuing its choppiness; Soybean oil finished down 80 points to close at 55.73 while soybean meal in the May contract finished down three dollars to close at 392 a ton. In my opinion I believe soybean prices have topped out in the short term and I think many of the commodity sectors are headed lower including the grain market  in the next couple of months.  If you are looking for a futures broker feel free to contact Michael Seery at 800-615-7649 and he will be more than happy to help you with your trading.

There is a substantial risk of loss in futures, futures option and forex trading. Furthermore, Seery Trading is not responsible for the accuracy of the information contained on linked sites.

Energy Futures--- Energy futures tumbled this afternoon in New York with unleaded gasoline leading the way down finishing lower by almost 800 hundred points retesting last week’s low in the May contract settling at 3.26 a gallon while heating oil futures are also retesting last week lows down 550 points in the May contract the close at 3.12 in heavy volume. Crude oil futures finished unchanged for the trading session in the June contract settling at 103.35 a barrel in a light trading session. Brent crude oil got hammered today down $2.60 to close right around 118.60 a barrel and I can't remember the last time I saw the WTI crude oil basically unchanged while the Brent crude oil sharply lower because they generally move in the same direction but today's action was blamed on spreading where traders were getting out or selling unleaded gasoline and heating oil and buying back crude oil futures which was working for several months because unleaded gasoline was way outperforming crude oil. If you have questions about spreading options or spreading futures please give Michael Seery a phone call at 800 – 615 – 7649 and he will be more than happy to help you understand how spreading works in the agricultural and energy sectors. Natural gas for the day finished unchanged at 1.99 in a lack lustre trade still right at a 10 year lows.

There is a substantial risk of loss in futures, futures option and forex trading. Furthermore, Seery Trading is not responsible for the accuracy of the information contained on linked sites.

Meat Futures-----Live cattle futures for the June contract finished basically unchanged for the trading session to close at 116.10 a pound looking to retest last Wednesdays contract low of 114.10 a pound while feeder cattle prices rallied 70 points in the May contract close around 152.22 and is about 600 points from contract lows which happened last week. Lean hogs futures sold off to another fresh contract lows finishing lower by 182 points to close at 88.22 a pound and is now down over 500 points in two trading sessions and a 1000 points just from its highs in late February due to lack of demand and still a relatively expensive price historically. I am bearish the meats  as well as many of the commodities because I think the European crisis is going to spread like it last year and demand from Europe and China will slow down in the next couple of months. If you are looking for a futures broker feel free to contact Michael Seery at 800-615-7649 and he will be more than happy to help you with your trading.

There is a substantial risk of loss in futures, futures option and forex trading. Furthermore, Seery Trading is not responsible for the accuracy of the information contained on linked sites.

Currency Futures--- The U.S dollar reversed earlier gains and finished lower by 33 points in the June contract closing around 79.72 and is having a difficult time breaking above 80.20 in the short term while the Euro currency rallied sharply from earlier losses of 80 points only to finish 60 points higher in the June contract to close at 1.3142 in an extremely volatile trading session today. The British Pound for the June contract was up 50 points to close at 1.5897 while the Canadian Dollar which is been in a 11 week tight channel with low volatility finished down 14 points in the June contract closing at 99.89 and if that closes below 99.30 that would be a breakout to the downside of an 11 week consolidation which in my opinion would be a terrific selling opportunity. Take a look at the Canadian Dollar daily chart as well as the Mexican Peso on the daily chart because they are very similar with the Peso breaking out to the downside a couple of days ago while the Canadian dollar has not broken out to the downside just yet. The Japanese Yen today was up 100 points to close around 1.2438 continuing its bullish momentum against the U.S dollar. In my opinion I think the dollar will climb and grind higher throughout the course of the spring and I am bearish the Euro currency, Canadian Dollar, and the Mexican Peso and if you take a look at those charts on my website I think you will agree with my analysis. If you are looking for a futures broker feel free to contact Michael Seery at 800-615-7649 and he will be more than happy to help you with your trading.

There is a substantial risk of loss in futures, futures option and forex trading. Furthermore, Seery Trading is not responsible for the accuracy of the information contained on linked sites.

 

 

Cotton Futures---Cotton futures this morning are plunging right off of the opening bell currently trading down 250 points retesting recent lows in the December contract trading at 86.15 in a pessimistic and bearish commodity market today. The December cotton crop which will be harvested this fall is retesting last weekly lows and keeping an eye on the contract low which is at 84.20 which is the next major support in prices. The commodity sectors as a whole have rolled over and look bearish in my opinion due to the fact that the U.S dollar is climbing against the foreign currencies plus major economic concerns in Europe. However I do think the price decline in cotton is limited and the current price at this point is inexpensive so I don't think there's much more room to the downside, I just don't think we’re going to start rallying sharply anytime soon. The summer months bring extreme volatility to grain and cotton prices and if we suffer a drought you will see agricultural prices go much higher, however that’s  if we have weather problems but if we don't experience weather problems we are going to bring in large supplies of grains and cotton this fall so prices could definitely head lower. . If you are looking for a futures broker feel free to contact Michael Seery at 800-615-7649 and he will be more than happy to help you with your trading.

There is a substantial risk of loss in futures, futures option and forex trading. Furthermore, Seery Trading is not responsible for the accuracy of the information contained on linked sites.

 

 

Coffee Futures--- Coffee futures hit another fresh contract low this morning plunging more than 500 points in the July contract currently trading at 175.10 with traders shaking their heads on how low coffee prices could go. The next support in coffee is all the way down at 160 which is still 15 points away and if that price is broken you could go all the way back down to about 1.25 a pound which would be incredibly cheap price compared to the last five years. The trend in coffee is sharply lower and it continues to grind lower with excellent chart structure and I believe it will continue to grind lower going into harvest season. If you are looking for a futures broker feel free to contact Michael Seery at 800-615-7649 and he will be more than happy to help you with your trading.

There is a substantial risk of loss in futures, futures option and forex trading. Furthermore, Seery Trading is not responsible for the accuracy of the information contained on linked sites.

 

Sugar Futures-- Sugar futures this morning in the July contract hit a fresh four-month low down another 50 points currently trading at 22.30 a pound with the next major support be in the contract low of 22.20 and if that level of support is broken you could head all the way back down to the 2010 lows of around 16.50 a pound continuing its bearish momentum. The softs commodities are in bear markets including coffee, cocoa, sugar, lumber, and cotton prices all continuing bearish momentum throughout this early spring and in my opinion I think this will continue for the next couple of months until some resolution comes out of Europe. If you are looking for a futures broker feel free to contact Michael Seery at 800-615-7649 and he will be more than happy to help you with your trading.

There is a substantial risk of loss in futures, futures option and forex trading. Furthermore, Seery Trading is not responsible for the accuracy of the information contained on linked sites.

 

Cocoa Futures-- Cocoa futures are bucking the trend again today up another 20 points in the May contract currently trading at 22.67 and that's after Friday 90 point gain after a possible triple bottom was hit in prices last week. I am still pessimistic about cocoa prices even though the chart looks like it might have a triple bottom but with the rest the commodities heading lower I have a hard time believing this recent rally and I think traders should take advantage of this latest rally in prices and sell. If the US dollar continues to head higher it will be difficult for cocoa prices to remain at these levels which are historically high. . If you are looking for a futures broker feel free to contact Michael Seery at 800-615-7649 and he will be more than happy to help you with your trading.

There is a substantial risk of loss in futures, futures option and forex trading. Furthermore, Seery Trading is not responsible for the accuracy of the information contained on linked sites.

 

Orange Juice Futures--Orange juice futures are unchanged this morning reversing an earlier 600 point gain off of the opening bell currently trading at 146.50 in the May contract continuing its bearish momentum. If you look at the orange juice futures daily chart its basically straight down from 190 all the way to today’s price level and in my opinion it could even head lower at this point in time due to the fact that there just is not that much demand for this product and it is still relatively expensive. In my opinion I believe a lot of the commodity prices will bottom in early summer but as of right now uncertainty in Europe and in China is really putting a lid on prices and could hurt demand and the next couple of months. If you are looking for a futures broker feel free to contact Michael Seery at 800-615-7649 and he will be more than happy to help you with your trading.

There is a substantial risk of loss in futures, futures option and forex trading. Furthermore, Seery Trading is not responsible for the accuracy of the information contained on linked sites.

 

 

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