. Daily Commodity Analysis - Wheat falls, silver corrects, oil steadies.

Daily Commodity Analysis – Wheat falls, silver corrects, oil steadies.

Daily Commodity Analysis – Wheat falls, silver corrects, oil steadies.

28 Dec 2023

Introduction:

In the commodities market, Wheat futures decline as a weak demand outlook persists. Wednesday saw a 2% drop in wheat prices, with skepticism among traders about sustained export demand improvement. In the silver market, XAG/USD corrects to $24 amid low trading, while gold approaches $2,100, benefiting from the continued weakening of the US Dollar. Additionally, oil prices stabilize after a significant decline, marking key developments in the current commodity landscape.

Wheat Futures:

Wheat Futures drop on the weak demand outlook.

On Wednesday, wheat prices for March delivery declined by 2% to $6.24 1/2 per bushel on the Chicago Board of Trade. Traders remain skeptical that indications of enhanced wheat export demand will result in a sustained shift in that demand.

Despite USDA data indicating enhanced sales and shipments of U.S. wheat, the grain did not experience a prolonged rally, as analysts continue to perceive demand for U.S. crops as weak. The analyst noted, “Demand has been poor for U.S. wheat as Russian production looks strong.”

Technical Overview:

Moving Averages:

Exponential:

  • MA 5: 593.84| Positive Crossover | Bullish
  • MA 20: 611.78| Negative Crossover | Bearish
  • MA 50: 642.87| Negative Crossover | Bearish

Simple:

  • MA 5: 592.25| Positive Crossover | Bullish
  • MA 20: 611.78| Negative Crossover | Bearish
  • MA 50: 642.87| Negative Crossover | Bearish

RSI (Relative Strength Index): 31.5| Sell Zone | Bearish

Stochastic Oscillator: 33.11| Sell Zone | Positive

Resistance And Support Levels:

  • R1: 595.31 | R2: 616.42
  • S1: 585.52| S2: 572.65

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Sell Limit: 595.31 | Take Profit: 574.71 | Stop Loss: 608.70.

Silver:

XAG/USD undergoes a correction, approaching the $24 amid a thin-trading week.

Silver prices dip to around $24.00 in a shortened week, coinciding with the U.S. Dollar hitting a new five-month low near 101.40.

The correction of silver prices (XAG/USD) continues, reaching approximately $24.00 as trading volume significantly diminishes amid a festive market atmosphere. Despite expectations that the Federal Reserve (Fed) will initiate lower interest rates sooner than previously anticipated, the white metal encounters selling pressure.

Meanwhile, investors will concentrate on the weekly release of Initial Jobless Claims data scheduled for Thursday.

Technical Overview:

Moving Averages:

Exponential:

  • MA 5: 24.28 | Positive Crossover | Bullish
  • MA 20: 24.22 | Positive Crossover | Bullish
  • MA 50: 23.83| Positive Crossover | Bullish

Simple:

  • MA 5: 24.24 | Positive Crossover | Bullish
  • MA 20: 24.22| Positive Crossover | Bullish
  • MA 50: 23.83| Positive Crossover | Bullish

RSI (Relative Strength Index): 55.08 | Buy Zone | Bullish

Stochastic Oscillator: 49.26| Buy Zone | Positive

Resistance And Support Levels:

  • R1: 24.44 | R2: 25.49
  • S1: 23.62| S2: 22.79

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Stop Buy: 24.60 | Take Profit: 25.49 | Stop Loss: 24.02.

Elsewhere In the Commodity Market.

Oil prices steadied on Thursday following a notable decline in the previous session. The price of gold advances towards $2,100 as the US Dollar continues its decline in early European trading on Thursday.

Gold is down (0.09%) at 2075.70, Silver is up (0.02%) at 24.30, Palladium is down (1.86%) at 1132.10, Platinum is down (0.18%) at 993.66, Brent Crude Oil is down (0.60%) at 79.09, WTI Crude Oil down (0.78%) at 73.58 as of writing time.

Key Economic Events & Data Release Today:

(JPY) Industrial Production (MoM) (Nov) Actual –0.9, Forecast –0.6%, Previous 1.3% at 05:20.

(JPY) Retail Sales (YoY) (Nov) Actual 5.3%, Forecast 5.0%, Previous 4.2% at 5:20.

(USD) Initial Jobless Claims Forecast 210K, Previous 205K at 19:00.

(USD) Pending Home Sales (MoM) (Nov) Forecast 1.0%, Previous –1.5% at 20:30.

(USD) Crude Oil Inventories Forecast –2.704M, Previous 2.909M at 21:30.