Expert Believes We Will See $10 a Barrel Crude Oil Futures

Crude oil futures have resumed lower today as one expert consultant has published his belief oil is still heading down to the $10 level because of a world “awash in crude.” Crude oil futures are down $1.18 today currently trading at $48.70 per barrel at the New York Mercantile Exchange. This professional consultant feels recent gains since the February low isn’t justified with the outlook of crude oil that collapse the energy market in the first place – such as the wildfires near the oil sands region of Canada, cuts in output by politically unstable countries such as Nigeria & Venezuela, or even the hopes of American fracking efforts subsiding all played a part of this recent oil price surge. In the meantime, the Persian Gulf allies and the Saudi’s have been playing a futile game of bluffing with the world’s other major oil producers. “But the world continues to be awash in crude, and American frackers have replaced the Organization of Petroleum Exporting Countries as the world’s swing producers. The once-feared oil cartel is, to my mind, pretty much finished as an effective price enforcer,” said A .Gary Shilling, president of his namesake’s New Jersey-based consultation firm, sharing his fundamental assessment of the crude oil futures market. Shilling added, “Even OPEC’s leader, Saudi Arabia, is acknowledging the new reality by quashing recent attempts to freeze (crude oil) output, borrowing from banks and preparing to sell a stake in its Aramco oil company as it tries to find new sources of non-oil revenue.” The technical trend for crude oil futures has recently rolled over back “down” with lower-highs and...

Hog Futures Resume Sell-Off With Pork Producers Facing Losses

Hog futures continues its retreat down for the ninth out of eleven trading sessions as news is learned that reportedly domestic hog producers are poised for a minimum of six months of operating in the red. Hog futures are down $0.60 per cwt today currently trading at $83.375 per pound at the Chicago Mercantile Exchange. “Breakeven” may be the best hope for hog producers in the second quarter next year if a University of Illinois professor is correct on his assessment. He believes animal prices per head will fall from an $8 profit to a $19 loss taking into consideration feed prices follow the expectations of the current futures prices curve – and this doesn’t take into account any interruption in the world economy following the Brexit situation. “If Brexit does slow world income growth, that could be negative for global sales of pork and other US agricultural products,” said Chris Hurt, professor at the University of Illinois, sharing his fundamental assessment of the hog futures market. Hurt added, “Brexit gives our biggest global pork competitor a sizable and immediate price advantage.” Hog futures trend has only recently turned “down” from the $90+ highs only two weeks ago. I would expect some type of bounce in the hog futures market in the next week, but if Professor Hurt is correct on his assessment, we may see a longer-term downtrend ahead. 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...

Can “Brexit” Be the Start of a Major Gold Futures Bull Market?

Gold futures have retreated about one-half from their Brexit highs last Friday, but one gold veteran with more than 20 years in the industry claims last week’s move may be the very start of a forthcoming major bull market for the precious metal. Gold futures are down $6.30 per ounce today currently trading at $1,318.40 per ounce at the Commodity Exchange in NYC. The Aussie mining-boss – Jake Klein – believes investors are returning to the market with the rise of so much uncertainty and volatility because gold provides an “alternative currency.” Late last week gold soared over $100 per ounce after the United Kingdom voted for nationalism (versus “globalism”) and investors seeking a safe haven with financial uncertainty abound. “I guess to me, the most interesting thing is: are we seeing the first fault lines of a major correction and change in the financial and political systems?,” asked Jake Klein, head of Australia’s second-biggest gold producing venture Evolution Mining Ltd., sharing his fundamental assessment of the gold futures market. Klein added, “If that’s the case, then we could very well be at the early stages of a major bull market.” The trend for gold futures is up with no top yet in sight. For those that didn’t want to take a chance at last week’s direction for gold futures, I believe we’re seeing a correction in the market possible to even lower levels. 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...

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:  Soymeal, Sugar, Soybeans, Cotton, Eurodollars, Gold, Silver and Coffee DOWN Trending Futures Markets:  High-Grade Copper, Feeder Cattle and Kansas Wheat, Soy Oil & CBT Wheat (These three 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...

Corn Futures Extend Retreat Amid Favorable Weather Conditions

Corn futures have seen their sixth down day in the last seven sessions with prices slumping nearly .60c a bushel since only last week as weather concerns have subsided. Corn futures are down .055c today currently trading at $3.985 per bushel at the Chicago Board of Trade. The USDA provided a better than expected report in their weekly corn crop ratings earlier this week and even adding no significant damage yet to be seen as harvest is well underway. Now that the weather prospects are becoming more favorable, the chances of corn becoming stressed before its pollination period is subsiding. “We have all been following the (corn futures) crop weather story closely,” said Gerry Plotkin, a Senior Market Strategist for R.J. O’Brien in Chicago, sharing his fundamental assessment of the corn futures market. Plotkin added, “All the areas we were concerned with for dryness appears to have cooler and wetter weather ahead, and the (corn futures) market is reflecting this development.” Corn futures technical trend remains “up” even after this recent fallout. However, if corn futures were to take out today’s low, it could possibly change the trend downward. 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...