The price of December corn for the past week closed at fourteen-and-a-half cent cents higher. Last week saw active corn-harvesting from the beginning to the end. Traders anticipate that the rate of the harvest will move a bit higher than the average following the corn progress report on Monday. The corn market is gradually making a comeback from a tighter supply/demand scenario. The longer-term basics showed a significant improvement for the corn market because of the alterations that the USDA made.
The number of available stock that started smaller than anticipated in addition to anticipations for stronger exports indicates bullish trends. The September WASDE report of USDA estimated the total corn import from China for 2020/21 at 7 million tonnes. However, China has previously ordered over 9 million tonnes of corn only from the US despite we are only a few weeks into the marketing year. The total amount of corn exported from the US for 2020/21 currently at 48 percent of the USDA’s projection for the whole market year and a 5-year mean value of 27 percent.
All things being equal, the treasury market action keeps putting traders into a state of dilemma as key fundamental news didn’t yet cause a price rise outside a comparatively tight trading range. Truly, the data flow from the monthly jobs report was countervailing with the news about payroll increase that supported prices, whereas an upward review in the past month’s payrolls merged with a bigger than anticipated fall in the rate of the unemployment rate was a reason to sell.
Consequent to the news trend which was a bit stronger-than-anticipated Michigan consumer sentiment reading for September and an unsatisfactory US factory orders report for August. Nonetheless, the drawback move in Treasury prices early last week was anticipated given a range of upbeat economic data points.
The equity markets showed significant concern given the news that President Trump has tested positive for Covid-19. Nonetheless, we won’t term the fall as a sign of high market vulnerability to panic selling given that the index showed on a fall of 60 points. Conversely, potential key negatives exist in the market and it would seem as if these problems are merging with the volatility that has the potential for an explosion in the following weeks.
Standard corporate news is currently mixed with reports that Ford sales bargain-hunting purchasing are beginning to recover on FAANG stocks together with news about Intel’s collaboration in the contract to assist the Pentagon to formulate chips. The global trend in the equity market early this week indicated a bullish move with only one exception showing a lower trade in the Russian stock market. Nonetheless, Australia China, and other Asian countries are still on holiday.
GOLD, SILVER & PLATINUM
The gold market in the past week made a few inroads contrary to the bearish switch in existence starting from the beginning of August, the general fundamental and technical analysis are still supporting the bearish trend.
The information from a few news outlets that indicate the gold price has dropped following the news that the US President could quit on Monday, it seems as if a few moves of flight to quality purchase lagged towards the end of the rally, last week.
Moving ahead, we have started to see the dollar index weaken irrespective of the news that US airlines didn’t succeed to obtain the required Congress support. Currently, at least two key airlines are making a move to initiate major layoffs. In the face of the present bumpy scenario, we anticipate bearish moves for gold and silver markets, in part because of the looming potential for additional drawbacks in obtaining a stimulus deal.
Last week, the silver market reported a less attractive upward trend compared to the gold that made the primary jump on Monday followed by poorer trade records for the remaining part of the week. Backward review shows that the silver market didn’t gain enough momentum for the bullish trend occasionally recorded in the gold market last week. What we assume as the cause is that silver is viewed as a standard physical commodity market given the increasing economic uncertainty.
Although it is just an insignificant move, silver ETF holdings last Friday soared by 865,853 ounces resulting in a net profit of 8 million ounces for the past week. The Commitments of Traders report for the week that ended on the 29th of September indicated that Silver Managed Money investors made a net long contract of 35,772 following the rise in their existing long position by 189 contracts. The contracts from non-Commercial and Non-Reportable trader’s net purchase of 755 contracts are presently at 57,378 net long contracts.
The platinum market last week occasionally made a few positive moves with the spillover gain lift offered by gold and silver. The final reversal of the past week’s rally saw two straightforward lower closes. The classic physical commodity market demand dropped a little last week due to unsatisfactory nonfarm employees. The number of Covid-19 infected people in the US increased and this resulted in a more vulnerable equity market. It equally created ambiguity due to the President’s virus contraction. The basic bias in platinum prices showed a low trend at the start of the trading week. Luckily for the bulls, the net specification and the long position of fund early last week showed a very low record compared to the level since the 3rd week of April which recorded the least position since April 2017.
The prices of Copper began the new trading week on positive traction, with Asian production appearing to make a jump before China in the recovery competition. A likely potential is that copper is catching a few extra speculative purchases because two copper mines in Chile are halfway through labor negotiations. The negotiation is anticipated to reach a critical position at the start of the trading week.
After the last week’s increased volatility with a record of a two-day high to the low trading range of roughly 0.20 dollars, the copper trade may be witnessing the impact of Chinese traders and buyers going on a long-term holiday. The Chinese holiday that may last beyond Thursday is a threat to the return to lockdown in locations like Europe, the UK, and a few regions of the US will show panic buying that is less likely to be countervailed by Chinese purchases.