Commodity Snapshot shows Wheat futures fell due to US supply expectations, while gold prices decreased due to the US dollar’s strength. USDA’s 13th Crop Progress report shows 97% of winter wheat has reached all top 18 states, ahead of the five-year average..
As of June 23, 97% of the 2024 corn crop in the top 18 corn-growing states has emerged, slightly ahead of the five-year average of 96%. Soybean planting progress is also at 97%. However, soybean futures are supported by flooding in the Upper Midwest, which traders are weighing against the moisture’s ability to mitigate extreme heat.
Gold prices fell due to Governor Michelle Bowman’s comments on keeping borrowing costs high and San Francisco Federal Reserve President Mary Daly’s recommendation for higher interest rates to slow inflation. Other precious metals, including silver and PGM, rose.
U.S. natural gas futures lost gains, and Texas spot prices fell below zero for the first time since May. Warmer weather in Lower 48 states and increased competition for liquefied natural gas supplies raise European gas prices.
Oil prices are strengthening due to growing confidence that global oil inventories will decrease during summer, seasonal demand for oil products, Ukrainian drone attacks on Russian refineries, and EU sanctions against Russia over Ukraine. The U.S. personal consumption expenditures price index is also closely monitored.
Energy
Crude oil (CL1:COM) +0.84% to $81.51.
Natural Gas (NG1:COM) -1.17% to $2.83.
Metals
Palladium (XPDUSD:CUR) +1.84% to $942.50.
Platinum (XPTUSD:CUR) +1.09% to $998.60.
Gold (XAUUSD:CUR) -0.15%t to $2,316.49.
Agriculture
Corn (C_1:COM) -3.59% to $427.09.
Wheat (W_1:COM) -3.38% to $541.53.
Soybeans (S_1:COM) +1.17% to $1,176.86.
Must read book about investing – check here Commodity Snapshot Commodity Snapshot Commodity SnapshotCommodity Snapshot European natural gas futures reached a two-week high of €31/MWh Commodity Snapshotdue to geopolitical tensions and supply disruption fears. Gas-fired power generation remains more profitable for utilities than coal-fired power.
European natural gas futures reached a two-week high of €31/MWh due to geopolitical tensions and supply disruption fears. Gas-fired power generation remains more profitable for utilities than coal-fired power.
Gold prices are expected to gain for the first time since October due to the US Federal Reserve’s anticipated interest rate cut in June. The Reserve Bank of India’s gold holding increased to 812.3 tonnes in January, from 803.58 tonnes in December 2023. However, Commerzbank sees limited upside potential due to the mystery surrounding the price increase. It is unlikely that gold prices will fall back to February levels, as the Fed is expected to cut interest rates in June.
Spot gold was trading -0.3% lower at $2,176.89 an ounce as markets awaited the release of U.S. CPI data, which could influence the Federal Reserve’s policy path. A hotter-than-expected reading could delay the central bank’s easing cycle. Low interest rates help bullion by reducing the opportunity cost of holding the zero-yielding asset. A mixed tone prevailed across commodity sectors, with China’s economic growth concerns affecting bulks and supply concerns supporting industrial metals.
Natural gas and crude oil prices were trading in the green, while oil prices fell earlier due to persistent demand concerns in China. NS Trading president Hiroyuki Kikukawa said that concerns over weak demand in China outweighed the extension of supply cuts by OPEC+. Mixed US jobs data prompted some traders to adjust positions. However, losses will be capped by increased geopolitical risk, with the possibility of a ceasefire in the Hamas-Israel war and conflict expansion in Russia and its neighbors. Europe remains the most impacted region, as oil product shipments from Asia have fallen since January. OPEC+’s voluntary production cut agreement could tighten the market as demand recovers from its seasonal lull.
Natural gas and crude oil prices were trading in the green, while oil prices fell earlier due to persistent demand concerns in China. NS Trading president Hiroyuki Kikukawa said that concerns over weak demand in China outweighed the extension of supply cuts by OPEC+. Mixed US jobs data prompted some traders to adjust positions. However, losses will be capped by increased geopolitical risk, with the possibility of a ceasefire in the Hamas-Israel war and conflict expansion in Russia and its neighbors. Europe remains the most impacted region, as oil product shipments from Asia have fallen since January. OPEC+’s voluntary production cut agreement could tighten the market as demand recovers from its seasonal lull.