Schad Commodity’s Trading Weekend Report: An Insider’s View of the Next Big Market Move

Once each week, usually on Friday evenings, we update our personal weekly commodity trading charts and review them for changes in “net long” or, “net short” holdings between the big commercial commodity traders, large speculators, and the usually uninformed public. This is our professional analysis of “the bigger picture” and current dynamics for each market which provide a spyglass view of the BIG commercial traders and what they are currently doing to influence the futures markets. As you may already know, insider trading with stocks on Wall Street is very illegal. However, in the commodity trading industry, large/commercial traders MUST report their positions EACH WEEK to the CFTC regulatory body, hence, we monitor them on a weekly basis. Although the futures markets themselves will ultimately provide the most accurate illustration of trend, these (weekly) charts we’ve identified, serve to forewarn us of the next possible bigger move. Here are the commodity markets which illustrate the changing bigger picture for them: UP Trending Futures Markets:  Natural Gas, Japanese Yen and 10yr. T-Notes (New this week.) DOWN Trending Futures Markets:  Soymeal, Russell 2000 Index, British Pound, Cocoa and Cotton & Copper (Both new this week.) ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL...

Natural Gas Futures Find Support After Domestic Storage Data

Natural gas futures may have finally found solid support as freezing temperatures across parts of the country have boosted demand. Natural gas futures are up almost one-half cent today currently trading at $2.205 per BTU at the New York Mercantile Exchange. Today the US Energy Information Administration announced natural gas storage in the week ending last Friday declined by 211B cubic feet – compared to expectations of only 207B. This is reportedly the biggest drop in natural gas storage since February of last year. “The big question for natural gas (futures) now is how is the weather forecasted to behave next, followed by where is the real support for this market?” said Laura Taylor, a senior market strategist at RJO Futures in Chicago, sharing her fundamental assessment of the natural gas futures market. Taylor added, “The natural gas trade had been dropping to the lowest prices ever and this technical bounce higher puts the trade at a crossroad.” Natural gas futures appear to be in an early phase of a possible uptrend. However, consumers can be confident natural gas futures may require more fundamental changes to reverse and sustain higher – still too early to tell. ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL...

Agricultural Bearish Bets Cut by Hedge Fund Managers: Commodity Futures

Agricultural commodity futures bearish bets by hedge fund managers have become less aggressive for the first time since Christmas – with an exception of wheat futures. Grains are mixed across the board today – soybeans up, wheat down, and corn unchanged at the Chicago Board of Trade. Early last week data from the Commodity Futures Trading Commission revealed “large speculators” (managed money) slashed their net “short positions” by over 87,000 contracts in both futures & options of the top 13 domestic agricultural commodity markets. The bearish bets by hedge funds had actually been building for the past four weeks before pulling positions. “The grains have led the agricultural commodity sector out of the bearish attitude of the professional money managers throughout most of the month,” said Nicholas Medina, a futures and options specialist for Capital Trading Group in Chicago, sharing his fundamental assessment of the agricultural commodity futures market. Medina added, “This comes simultaneously when the Commodity Research Bureau’s index reached its lowest point since March 2002 also (last week).” The grain markets have mixed trends, but the softs are now all down and cattle is down, but hogs are up. In my view, the agricultural commodity markets have been providing value for potential customers, but eventually a buying attitude prevails to end bear markets. ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL...

Corn Futures Higher as Outlook for Demand Rises

Corn futures may be projecting demand as a major bank declares domestic corn sowings will remain steady with last year’s thanks to appealing economics. Corn futures are up .02 cents at this time currently trading at $3.715 per bushel at the Chicago Board of Trade. Corn sowings in 2015 were at/near 88M acres and despite corn yields expected to be 10% less than the year before because of planting in a second year running, corn is expected to be a better choice cash crop. Corn is winning the acreage by holding steady as soybeans and wheat are expected to lose acreage. “Clearly farmers are gauging the price ratio of corn versus other crops and/or grains,” said Kevin Craney, Director of Managed Futures at RJO Futures in Chicago, sharing his fundamental assessment of the corn futures market. Craney added, “Farmers only have so much land – and they’re not only making hay – so they want to find the most profitable crop for the next harvest.” Corn futures trend (on daily charts) have recently shown signs of a potential uptrend forming. We can expect corn futures to test the early month $3.50 lows hopefully soon. ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL...

Schad Commodity’s Weekend Report: An Insider’s View of the Next Big Market Move

Once each week, usually on Friday evenings, we update our personal weekly commodity trading charts and review them for changes in “net long” or, “net short” holdings between the big commercial commodity traders, large speculators, and the usually uninformed public. This is our professional analysis of “the bigger picture” and current dynamics for each market which provide a spyglass view of the BIG commercial traders and what they are currently doing to influence the futures markets. As you may already know, insider trading with stocks on Wall Street is very illegal. However, in the commodity trading industry, large/commercial traders MUST report their positions EACH WEEK to the CFTC regulatory body, hence, we monitor them on a weekly basis. Although the futures markets themselves will ultimately provide the most accurate illustration of trend, these (weekly) charts we’ve identified, serve to forewarn us of the next possible bigger move. Here are the commodity markets which illustrate the changing bigger picture for them: UP Trending Futures Markets:  Natural Gas and Japanese Yen DOWN Trending Futures Markets:  Soymeal, Russell 2000 Index, British Pound and Cocoa ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL...