Closing Commodity Comments For 6-14-12

Coffee Futures--- Coffee futures today in New York are down another 360 points right near session lows at 149.80 a pound in the July contract creating a new 2 ½ year low also making a fresh contract low continuing its grinding bearish momentum which in my opinion will continue to head lower possibly into the mid-130s within the next month or so due to the fact of a lack of demand and an ample supply at this time. Volatility in coffee at this point is extremely low and if you are interested in getting into the coffee market I would look at put or call options because they are relatively cheap compared to where they have been in recent years. I think if you are a longer-term investor and if coffee prices do get down into the low 140s or possibly into the 130s and you have a long term horizon I think that could be an excellent buying opportunity if prices slide to those bargain-basement levels. If you are looking for a futures broker feel free to contact Michael Seery at 800-615-7649 and he will be more than happy to help you with your trading.

There is a substantial risk of loss in futures, futures option and forex trading. Furthermore, Seery Trading is not responsible for the accuracy of the information contained on linked sites.

Cotton Futures--- Cotton futures in the in New York today are soaring higher for the 2^nd consecutive trading session climbing another 150 points in the December contract which is considered new crop which we harvested this fall currently trading at 71.95 and traded as high as 73.08 breaking near term resistance before profit taking set in. Major resistance in cotton prices is right around 72 – 72.90 and if that level is broken I think you could trade all the way up into the mid to high 70s on concerns of a drought in Texas and in the southern United States. Like I've stated in many blogs I believe cotton prices are bottoming at these levels it is a very long growing season and I've seen many weather problems occur in July and August so for prices to plummet that quickly last month without regard to any possible future problems causes me to think that a possible bottom has been formed.  

Grain Futures---The grain market this afternoon in Chicago closed mixed with November soybeans ending down 13 cents closing right near the session lows at 13.06 a bushel while the July soybeans were hammered today finishing down 21 cents to close at 13.87 blamed on beneficial rains here in the Midwest and profit taking after the recent run up in price. The grain market is in the midst of a weather market when hot and dry patterns persist you will see prices head higher when wet and cooler temperatures persist you will see prices head lower and at this point much of the Midwest is having sufficient rain, however Illinois and Indiana are still very dry and if that continues you could see prices move sharply higher here in the short term. Rough Rice futures for the July contract finished higher by 15 cents still right near contract lows to close at 14.05 in a pretty lack lustre trade this afternoon in Chicago while the corn  futures for December were up seven cents to settle at 5.17 and held major support at 5.09 a bushel if you look on the daily chart has bounced off that level about half a dozen times only to rally and that is exactly what happened this morning while wheat futures are up 8 cents due to the fact that the Australian wheat crop was reduced helping support the price currently trading at around 6.22 in the July contract. It's a mixed bag in the commodity markets this morning with some commodities up and some commodities lower, however volatility has been very high lately and we will see what happens the rest of the day. If you are looking for a futures broker feel free to contact Michael Seery at 800-615-7649 and he will be more than happy to help you with your trading.

There is a substantial risk of loss in futures, futures option and forex trading. Furthermore, Seery Trading is not responsible for the accuracy of the information contained on linked sites.

Orange Juice Futures-- Orange juice futures today are slightly lower trading down by about 10 points at 110.90 a pound stuck in a tight trading range after hitting a 3 week high last week on thoughts that prices may have sold off to dramatically in the last two months or so, however if you look at orange juice futures on the daily chart this is just a very small kickback in price with really know to trend developing at this point so I still advise people to stay away from the orange juice market until a real trend develops which could be real soon. Many of the soft commodities in the last several weeks continuing to hit contract lows before this week including the orange juice market, however prices are still in trouble on the upside due to the fact that there is low demand for this product and a large harvest which increased supply causing prices to decline

Sugar Futures--- Sugar futures in New York are rallying once again higher by 23 points in the July contract currently trading at 20.15 still with major concerns that heavy rains in Brazil have damaged the crop causing speculation of a reduced harvest. Many of the commodities may have had a short term bottom including the sugar market which has rallied off the 18.90 a pound level quickly but still has not developed a short term trend at this point so I'm still advising you to sit on the side-lines and wait for a break out in the sugar before entering a long or short position. The next major resistance for sugar prices is right around 20.50 to the upside and to resume its trend lower would have to break the old contract lows which were hit just two weeks ago at 18.90.

Platinum Futures--- Platinum futures today in New York have broken out to a 4 week high trading higher by $20 dollars in the October contract trading at 1,492 an ounce on renewed demand for the precious metal. There is major support and a possible double bottom formed on the daily charts in the October platinum right around 1,395 which hit several weeks ago rallying sharply in the past 3 days with the gold market also moving higher in early trade this Thursday morning. I have become bullish the platinum market due to the fact that the momentum has turned to the upside and it seems to me that the demand for gold and platinum right now is very strong but I would advise you if you do take a long position in the platinum futures you to place a stop loss trying to minimize risk because it is a very volatile commodity and can move $40 or $50 on any given day

Euro Currency--- The Euro currency is slightly higher against the U.S dollar today trading higher by 12 points at 1 .2601 right near session highs on optimism that the Greek elections will be positive for the Euro currency this Sunday. Volatility in the Euro currency is extremely high at this point in time due to all the uncertainty in Europe, however after Sunday's election more information will be known thus Monday's trade should be a big one to the upside or downside. In my opinion I am still bullish the U.S dollar and I do think the European situation is going to get out of control in the next couple of months so I think investors will continue to pour money into gold and the U.S dollar

Milk Futures--- Milk futures in Chicago are trading sharply lower down nearly 50 points for the day trading session at 16.21 in the July contract right unable to break the critical 17 level so traders took profits from recent five-month highs selling the market off sharply. Just six weeks ago milk was hitting new contract lows at 14.20 with an incredibly pessimistic outlook but suddenly turned optimistic to new contract highs in such a short period of time now with major resistance around 17 – 1720 level. Exports increased tremendously in the last couple of weeks causing prices to climb higher with massive short covering as well but now were at a fork in the road to see if milk prices can break through the 17 level if they can't you could possibly retest that 15.60 level which was hit just two weeks ago

Lean Hog Futures--- Lean hog prices in Chicago today are rallying once again to fresh 3 ½ month highs in the July contract trading at 94.90 on renewed optimism of Chinese demand which could surge over 1,000,000 tons this marketing year alone. Prices look like they have bottomed around 84.00 cents a pound which happened twice in the month of May only to rally sharply now with major resistance at 95.00 and then after that possibly heading back towards 99 – 100 level which was right at contract highs just four months ago. Lower corn prices are also helping support hog prices with December corn right at contract lows helping farmers cut feed costs.

Energy Futures--- The energy futures rebounded sharply in New York today with crude oil rallying right towards the closing bell to finish up $1.65 in the August contract closing at $84.60 right near session highs pushing unleaded gasoline up for the July contract by 300 points right around 2.69 a gallon all following the stock market which is making new daily highs as I write this article. Heating oil futures for the July contract are up nearly 300 points to close right around 2.64 a gallon, however the real story today is natural gas futures up 33 points which is about a 15% move in one day in the July contract on an extremely bullish inventory report with hot weather coming around the corner pushing prices to a 10 day high of 2.52 in a wild and heavy volume trade. In my opinion it looks like natural gas futures have double bottomed and I would no longer be interested on the short side of this market, however I would be looking at possibly getting in on the long side if the hot weather continues and we start developing a trend on the daily charts. The energy markets many times follow the stock market when the stock market moves sharply higher the energy markets follow and that is exactly what happened today but they still have not broken out or hit a 10 day high so I am still pessimistic on the energy sectors at this time, however it looks to me that many commodities have hit a short term bottom and that the worst is over at this time so if you are still playing from the short side I would definitely place tight stops trying to minimize your risk. If you are looking for a futures broker feel free to contact Michael Seery at 800-615-7649 and he will be more than happy to help you with your trading.

There is a substantial risk of loss in futures, futures option and forex trading. Furthermore, Seery Trading is not responsible for the accuracy of the information contained on linked sites.