The Week In Commodities…
US Dollar Index: -0.59%
Natural Gas: 16.60%
Crude Oil (WTI): -0.71%
Nat Gas had a big week. Huge gains right up to Thursday’s storage report, at which point a small sell-off ensued. Friday was interesting with the selloff continuing in the AM, followed by a quick reversal to the upside. Hard to tell where NG is going from here. Seasonally it would normally be a downward trend with spikes here and there. It could be good for call premium collection if it does have some big up-days. Make sure to use spreads on this one if you open positions.
Gold did what we thought it would. The Fed dropped rates again, loosening the money supply. Gold found it’s footing and rallied. Premium opportunities look to be on the put side of things.
Soybeans went absolutely nowhere on the week. There was, however, an interesting move on Thursday when the A commodity is an economic good or service where the demand for it has no qualitative differentiation across a market (i.e. corn, petroleum, pork bellies, etc.) The market treats its instances as equivalent or nearly so with no regard to who produced them…. dipped quickly to 925 only to rebound to the mid 930s a couple of hours later.