Commodities Wrap-Up – 2019.11.22

on 2019.11.23

The Week In Commodities…

 

US Dollar Index:  0.35%
Natural Gas:  -0.67%
Crude Oil (WTI):  -0.16%
Gold:  -0.49%
Silver:  0.15%
Copper:  0.36%
Soybeans:  -2.42%
Wheat:  2.98%
Corn:  -0.61%

 

Crude was steady with no real disruption in the trade-war talks. As for Nat Gas, there was a strong downside move early in the week and bulls had to muscle it back to where it started. The storage report came out with a larger-than-expected draw, which served to bring the price up afterward. Still may be a downward bias, but be on the lookout for the weather-pops.

We may have seen the top in Gold and Silver for the year, as a downtrend seems to have formed. The idea that there won’t be any more rate-cutting is a rally-stopper for Gold.  Copper, on the other hand, seems fairly stable. If the global economy starts warming up, we may see some upside yet.

Corn and Soybeans look to have hit their peak, as well. Lots of weakness there. Wheat remained stable, but we will have to see if it follows.

So with Gold, Silver and the grains tipping over, there could be good OTM call selling potential here.  Perhaps for oil, also.  Nat Gas has yet to get the first real cold-snap price rise of the season, so call premium there can be dangerous. No guarantee it will happen in December, but the chance is there and it can be a portfolio killer to be on the wrong side of that.

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