All eyes are on the August 12th USDA crop report
for corn futures. The question is how much the USDA will cut the estimated
production for the 2019-2020 crop year. Analyst estimates are averaging about
13.19 billion bushels. Where the number comes in will likely determine the
direction of the market for the near future, which is no surprise to traders....
The price of gold has been trading sideways to lower during
the last couple months. This is typical of the gold market after it has a
strong run higher and it just can’t get the steady flow of “bad” news to
support the ever-increasing prices. Prices have started to bounce slightly in
this long-term bull market, but this might not be...
Crude oil has been through a whole lot of drama in the last
two weeks only to get back to where prices previously stood. The Saudi Arabia
bombings caused a huge price shock to the markets. Events like this will
typically either have long-term price ramifications for oil or they become
another overreaction in the markets that quickly bring prices back...
The energy markets became riled over the weekend as Saudi
Arabia took a major hit to oil production/distribution capabilities from drone
attacks. Fingers are pointing at Iran and they have deferred to Yemen. The big
issue here is whether this is the beginning of regular attacks and the
disruption of oil flowing onto the markets or was it an isolated event?
As I look through the longer-term commodity charts, I see
one downtrending market after another.
The main exception is the precious metals. The weakness in commodity
prices seems to makes sense with the increased recession talk on the financial
networks. Economic growth in Europe is anemic and may be recession bound in the
near future. Now let’s not forget that the yield...
