. Daily Commodity Analysis - WTI stabilizes, corn fluctuates, gas rebounds, gold steadies.

Daily Commodity Analysis – WTI stabilizes, corn fluctuates, gas rebounds, gold steadies.

Daily Commodity Analysis – WTI stabilizes, corn fluctuates, gas rebounds, gold steadies.

09 Jan 2024

Introduction 

In commodity landscape, WTI crude oil steadies near $71.10 as attention shifts to the Israel-Gaza conflict and uncertainties in the Middle East. With Secretary of State Antony Blinken’s visit to Tel Aviv and OPEC+ output increase, oil prices face potential volatility. Meanwhile, corn futures see a mixed start, and U.S. natural gas experiences a dip influenced by weather changes. Gold prices recover slightly after a recent slump, awaiting U.S. inflation data amid shifting market sentiments. 

Markets In Focus Today – CRUDE OIL

WTI consolidates near $71.10 after recent losses, eyes on Israel-Gaza conflict.  

WTI price could advance as markets fear the uncertainty around the Middle-East conflict. US Secretary of State Antony Blinken arrived in Tel Aviv to discuss with Israeli officials on talks with regional leaders. OPEC+ output increase and Saudi’s price cuts appear to have contributed to the depreciation of oil prices. West Texas Intermediate (WTI) price hovers near $71.10 per barrel during the Asian session on Tuesday. The Crude oil prices move sideways after recent losses registered in the previous session. Additionally, the Iran-backed Houthis escalates supply concerns by attacking container ships in the Red Sea. Such provocative actions, especially in maritime routes, have the potential to disrupt oil supply and impact market sentiment. 

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 72.24 | Negative Crossover | Bearish 
  • MA 20 : 72.68 | Negative Crossover | Bearish 
  • MA 50 : 75.12 | Negative Crossover | Bearish 
  • Simple :
  • MA 10 : 72.46 | Negative Crossover | Bearish 
  • MA 20 : 72.29 | Negative Crossover | Bearish 
  • MA 50 : 74.81 | Negative Crossover | Bearish 

RSI (Relative Strength Index) : 45.20 | Neutral Zone | Neutral 

Stochastic   Oscillator : 41.18 | Sell Zone | Negative 

Resistance   And Support Levels :  

  • R1 : 75.38 R2 : 77.52 
  • S1 : 68.47 S2 : 66.33 

Overall Sentiment : Bearish Market Direction : Sell  

Trade Suggestion : Stop Sell : 70.60 | Take Profit : 67.70 | Stop Loss : 72.89 

CORN

Corn Futures Start the Week Fractionally Mixed.  

Corn is starting off the new week with prices mostly red but by less than 1 ¼ cents. The March contract is up by ½ cents after an overnight range from -¾ to +1 ¾ cents. The new crop futures are more than a penny in the red in AM trading. Nearby corn prices were another 4 ¾ to 5 ¾ cents weaker on Friday completing the week a net 10 ½ cents lower for March. March also set a new contract low. Preliminary open interest continues to rise, up 18,623 on

Fridays sell off. Weekly data from CFTC had the managed money spec funds closing longs and adding shorts for a 19.7k stronger net short of 197,326 contracts as of 1/2.  Commercial corn hedgers were net new buyers during the week ending ½ and slipped to net long. The 2,233-contract net long was their strongest also since June of 2020. 

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 4.59 | Negative Crossover | Bearish 
  • MA 20 : 4.64 | Negative Crossover | Bearish 
  • MA 50 : 4.75 | Negative Crossover | Bearish 

Simple :

  • MA 10 : 4.61 | Negative Crossover | Bearish 
  • MA 20 : 4.66 | Negative Crossover | Bearish 
  • MA 50 : 4.74 | Negative Crossover | Bearish 

RSI (Relative Strength Index) : 31.63 | Sell Zone | Bearish 

Stochastic   Oscillator : 9.25 | Sell Zone | Neutral 

Resistance   And Support Levels :  

  • R1 : 4.79 R2 : 4.85 
  • S1 : 4.61 S2 : 4.56 

Overall Sentiment : Bearish Market Direction : Sell  

Trade Suggestion : Stop Sell : 488.95 | Take Profit : 460.67 | Stop Loss : 510.70 

NATURAL GAS

U.S. Natural Gas Futures Turn Positive After Falling By Over 5%.  

With natural gas traders appearing to look beyond an upcoming wintry blast, considering instead a still-comfortable supply outlook at this point in the season, natural gas futures pulled back early Monday. U.S. natural gas futures are trading lower on Monday, dropping by over 3.5% earlier in the session. This decline, influenced by changes in weather conditions over the weekend and a slump in European demand, sees the futures trading at $2.807, down by 2.97%. In the U.S., the decrease in natural gas prices is partially due to milder weather in the south and cooler yet stable conditions in the north. 

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 2.71 | Positive Crossover | Bullish 
  • MA 20 : 2.61 | Positive Crossover | Bullish 
  • MA 50 : 2.64 | Positive Crossover | Bullish 
  • Simple :
  • MA 10 : 2.65 | Positive Crossover | Bullish 
  • MA 20 : 2.49 | Positive Crossover | Bullish 
  • MA 50 : 2.68 | Positive Crossover | Bullish 

RSI (Relative Strength Index) : 71.30 | Buy Zone | Bullish 

Stochastic   Oscillator : 96.06 | Buy Zone | Neutral 

Resistance   And Support Levels :  

  • R1 : 2.60 R2 : 2.71 
  • S1 : 2.22 S2 : 2.11 

Overall Sentiment : Bullish Market Direction : Buy  

Trade Suggestion : Limit Buy : 2.933 | Take Profit : 3.229 | Stop Loss : 2.778 

GOLD

Gold prices steady from new years losses, inflation data awaited.  

Gold prices rose slightly in Asian trade on Tuesday, recovering from a rough start to the year as markets reassessed expectations for early interest rate cuts by the Federal Reserve before key U.S. inflation data due this week. The yellow metal fell sharply below the $2,050 an ounce level over the past week, tracking a rebound in the dollar as strong labor market data brewed uncertainty over just how much impetus the Fed has to begin loosening policy early. But gold prices saw some relief this week as the dollar fell from three-week highs, amid some profit taking. Still, the yellow metal remained well below highs hit in December. 

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 2044.01 | Negative Crossover | Bearish 
  • MA 20 : 2040.93 | Negative Crossover | Bearish 
  • MA 50 : 2015.84 | Positive Crossover | Bullish 
  • Simple :
  • MA 10 : 2051.88 | Negative Crossover | Bearish 
  • MA 20 : 2045.96 | Negative Crossover | Bearish 
  • MA 50 : 2014.69 | Positive Crossover | Bullish 

RSI (Relative Strength Index) : 49.39 | Buy Zone | Bullish 

Stochastic   Oscillator : 24.99 | Sell Zone | Positive 

Resistance   And Support Levels :  

  • R1 : 2127.21 R2 : 2168.19 
  • S1 : 1994.53 S2 : 1953.55 

Overall Sentiment : Neutral Market Direction : Sell  

Trade Suggestion : Limit Sell : 2037.52 | Take Profit : 1992.26 | Stop Loss : 2070.01 

Elsewhere In the Commodity Market

Gold up (0.32%) at 2034.27, Silver up (0.27%) at 23.15, Palladium down (0.47%) at 991.38, Platinum up (0.38%) at 948.28, Brent Crude Oil up (1.02%) at 76.88, WTI Crude Oil up (0.99%) at 71.47 as of writing time. 

Key Economic Events & Data Release Today:

(JPY) Tokyo Core CPI (YoY) (Nov) Actual 2.9%, Forecast 2.3%, Previous 2.5% at 05:00. (AUD) Retail Sales (MoM) (Nov) Actual 2.0%, Forecast 1.2%, Previous -0.2% at

15:30.

(EUR) German Industrial Production (MoM) (Nov) Actual 0.7%, Forecast 0.2%, Previous 0.4% at 12:30.

(CAD) Building Permits (MoM) (Nov) Forecast 1.7%, Previous 2.3% at 19:00.