Trends continued to play out this week, partially short squeeze induced, partly resurgent speculation with a significant loosening of financial conditions continues to feed the reversal in risk. The VIX fell another 3% Friday to the lowest since last January. One commodity not benefiting is natural gas futures, down another 7% or 10% depending on what month you are unfortunate to be long in. Notably the rest of the energy complex was down this week also. Copper had been a … Continue reading “Commodity Traders Weekly Outlook: Lumber Rebound and Natural Gas Slide Continues”
Commodity Traders Weekly Outlook: Heating Oil Soars, Natural Gas Falls (Reprise)
This week we saw a complete reversal in risk, from the VIX melting a softer US CPI report last week it was the top performer this week as indices floundered, though correcting much of that Friday with options expiration. Like a scratched record, natural gas futures were down again, losing another 8.34% while it’s energy brethren Gasoline, WTI, Brent Oil and Heating oil were all higher. Copper and gold continued higher but at a lesser pace. Copper had been a … Continue reading “Commodity Traders Weekly Outlook: Heating Oil Soars, Natural Gas Falls (Reprise)”
Commodity Traders Weekly Outlook: Copper Leads Risk on in Commodities as VIX Deflates
Commodities in the second trading week of the year were led by a meltdown of the VIX around a softer US CPI report and many in the throes of a major short squeeze. The US dollar throw kindling on much of that. One thing didn’t change, natural gas futures were down again, losing another 6% while it’s energy brethren Gasoline, WTI, Brent Oil and Heating oil were all higher. Copper accelerated it’s break higher, surging 7.8% (up 11% YTD). Copper … Continue reading “Commodity Traders Weekly Outlook: Copper Leads Risk on in Commodities as VIX Deflates”
Commodity Traders Weekly Outlook: Energy and Grain Futures Sell off in New Year
Commodities in the first trading week of the year saw a lot of continued trends, namely natural gas futures got wrecked again, losing another 16% after losing 11% for the week, and down 33% for December. Gasoline, WTI, Brent Oil and Heating oil were all lower. Wheat, Corn, Wheat and Oats all dropped between 6 and 2%. for the week. The common denominator with natural gas was milder weather. Copper, gold and cotton were the best performer for the week. … Continue reading “Commodity Traders Weekly Outlook: Energy and Grain Futures Sell off in New Year”
Commodity Traders Weekly Outlook: Platinum Surges as Natural Gas Slumps Again
Commodities in the last trading week of the year saw a big bounce in Platinum and Palladium recovering from a when prices collapsed on Chinese economic data combined with the explosive COVID infection wave being a serious threat to Chinese auto consumption and as such a threat for auto catalyst inputs like palladium. We saw a mixed result in energy markets. Gasoline, WTI, Brent Oil and Heating oil all higher. Whilst Natural gas sold off hard again, down another 11% … Continue reading “Commodity Traders Weekly Outlook: Platinum Surges as Natural Gas Slumps Again”
Commodity Traders Weekly Outlook: Heating Oil and Natural Gas Rebound as Palladium Collapses
Commodities saw a big bounce in energy with heating oil bouncing 12.19% on the week and Natural gas, oil and gasoline all up over 4%. The Bloomberg commodity index increased 0.9% (up 13.7% y-t-d). Wheat futures higher for the week but lower Friday as funds continue to be short Chicago wheat on slow demand for US wheat and chatter of higher Russia and Australia supplies. Silver and copper both gave back some of last week’s gains. Palladium prices collapsed as … Continue reading “Commodity Traders Weekly Outlook: Heating Oil and Natural Gas Rebound as Palladium Collapses”
Commodity Traders Weekly Outlook: Soybeans Rise; Oil, Heating Oil and Gasoline Crash
A mixed week for commodities with oil breaking down more getting all the attention. The Bloomberg commodity index dropped 2.4% (up 12.7% y-t-d). The USDA WASDE report was a big influence on grains, Soybean Meal, Soybeans and Canola among the leaders with Wheat and Oats amongst the weakest, while Corn hung in near unchanged. Silver and copper were again solid this week on supply concerns. Gasoline, Brent and WTI crude and heating oil were all the laggards all down around … Continue reading “Commodity Traders Weekly Outlook: Soybeans Rise; Oil, Heating Oil and Gasoline Crash”
Commodity Traders Weekly Outlook: Silver Soars While Natural Gas Crashes
Silver and copper were the leaders this week with fresh lows in the dollar with a tempering of Fed rate hike aggressiveness. Shanghai copper warehouse stocks this week fell by 7.2% at a 4-week low and LME stocks are at a 2 1/2 week low. WTI oil recovered strongly with the Russia oil Cap agreement, an OPEC+ meeting and a large storage draw. Natural gas gave us the flipside in energy, as the weakest commodity on the board with a … Continue reading “Commodity Traders Weekly Outlook: Silver Soars While Natural Gas Crashes”
Australian Metal Exports Central to Global Energy Transition Set to Double to $33 Billion
Australia already the world’s number one exporter in iron ore, natural gas and coal is set to see its metal exports essential to the global energy transition from fossil fuels double in just over a year to $33 billion. These metals include copper, nickel and lithium. The venerable Resources and Energy Quarterly from the Australian Office of the Chief Economist’s outlook for global commodity prices, demand and supply sees a dramatic surge in Australian exports critical to energy transition. Australia’s resource … Continue reading “Australian Metal Exports Central to Global Energy Transition Set to Double to $33 Billion”
Freeport McMoran Earnings Slide Along with Copper but Beat Expectations
Freeport-McMoRan, the world’s biggest publicly listed copper producer reported quarterly earnings on Thursday of $404 million from $1.4 billion in the year-ago quarter due to lower copper prices. The results beat expectations and FCX gave a bullish demand outlook for copper going forward. FCX has significant reserves of copper, gold, molybdenum, cobalt, oil, and gas. The company is a key player in energy transition. FCX stock price has been largely mirroring copper prices. $FCX has been repaying debt and distributing … Continue reading “Freeport McMoran Earnings Slide Along with Copper but Beat Expectations”