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Schad Commodity Blog & Commentary
This commentary is intended to provide unique insights with my 30+ years experience for the commodity crypto & futures markets we use in our everyday lives and is recognized, and has been selected, by Feedspot as one of the the Top 20 Futures Trading Blogs on the web. Schad Commodity views & opinion only. For additional commentary, and to assure you’re receiving the Schad Commodity Daily Report, be sure to connect on Facebook® & Twitter®.
From the desk of Brian Schad:
New Highs For Crude Oil After Weekly US Supply Data
Crude Oil futures are up $2.12 per barrel today to highs not seen since December after inventory data revealed domestic oil supplies rose to levels less than expected last week. Crude oil futures are currently trading just above $59 a barrel at the New York Mercantile Exchange.
According to the US Energy Information Administration, crude oil inventories increased by 1.9M barrels in the week ending April 24th, falling short of the expectations for an increase of 2.3M barrels. As it stands now, domestic oil inventories total nearly 491M barrels which is the most in 80 years – even drilling activity waning!
Kevin Riordan, director of research at Capital Trading Group in Chicago, shared his fundamental analysis regarding the current crude oil futures situation by stating, “The current rally in crude oil (futures) has the look and feel of a relief rally after falling too fast and too low.” Riordan adds, “Eventually the fundamental situation of supply and demand will catch-up with the markets.”
The trend for crude oil is up and with new highs breaking out today there is no top yet in sight. We’re seeing the repercussions of higher oil prices at the pump – already a dollar higher per gallon from the lows.
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 CONDITION.
Wheat Futures Fall to Seven Month Lows
Wheat futures fell today to prices not seen since late September following the USDA’s report yesterday of spring wheat planting progress. Wheat futures later turned up for the day to close just over .03 higher at $4.765 per bushel at the Chicago Board of Trade.
The USDA is reporting rapid planting throughout the Midwest last week which was anticipated in yesterday’s .15c drop. They have 55% of the spring wheat crop planted as of Sunday, which is 36% higher then the preceding week with 42% of the wheat crop rated good to excellent condition.
Gerry Plotkin, a Senior Market Strategist for R.J. O’Brien in Chicago, shared his fundamental analysis regarding the current wheat futures situation by stating, “The farmers are really taking advantage of the good weather while they have it.” Plotkin adds, “Looks like they are way ahead of schedule as only 17% of the wheat crop was planted this time last year, with the five-year average being 29% – so they’re looking good.”
Wheat futures trend is down with no bottom left in sight. In the next rally higher I think we should see wheat futures trend lower if/when September’s lows fail.
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 CONDITION.
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: Russell 2000 Index & Corn (New this week.)
DOWN Trending Futures Markets: Coffee, Euro-FX, Soymeal, Natural Gas, and Kansas Wheat, Soybeans & Corn (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 CONDITION.
Less Acreage Planted Up North a Boost for Soybean Futures
Soybean futures have rallied today when our friends from up north in Canada have reported their planting intentions. With world inventories left at glut levels, soybean futures have found support as late as early April at a price near $9.47 per bushel, and Canada’s news to plant less soybeans is proving to be a resistance finder.
Canadian farmers were polled (11,500 participating) between March 18th through the 25th and the study found less acres intended for soybeans. Last year, Canada dedicated a record amount of acreage for soybeans, but this year it will decrease by 3.4%, and this mainly comes from two provinces – Ontario & Quebec.
Jeff Evans, Vice-President of the Managed Accounts Division for RMB Group in Chicago, shared his fundamental analysis regarding the current soybean futures situation by stating, “Soybean (futures) were oversold and this is the type of news that can spur short-covering.” Evans adds, “Now what will it take for soybeans to sustain its rally?”
The trend for soybean futures remains down despite the .42 cent rally from the lows only two weeks ago. Soybean futures should still have a test of its low forthcoming…
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 CONDITION.
Natural Gas Futures Settling Before Inventory Report
Natural gas futures appear to be experiencing short-covering just before tomorrow’s weekly storage data release. Natural gas futures are up 32 points today, but .13c above last week’s contract low near $2.52 per British thermal unit at New York’s Mercantile Exchange.
Tomorrow’s storage report by the US Energy Information Administration is anticipated to show an additional 80B cubic feet of inventory for the week ending April 17th – which would be the most on record for the week. Natural gas supplies also rose by 45B cubic feet the week earlier in-line with the five-year average of an increase of 46B cubic feet for this time of year.
Barb Levy, chief director for The Fox Group’s futures division in Chicago, shared her fundamental analysis regarding the current natural gas futures situation by stating, “It’s hard to imagine a scenario that could rally this natural gas (futures) market one month into Spring.” Levy adds, “With natural gas storage topping 80% above year-ago levels, I wouldn’t be surprised to see natural gas (futures) continue the choppiness until production slows down.”
Natural gas futures trend is down with no bottom yet in sight. These low natural gas prices are a real plus for the consumer.
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 CONDITION.
US Planting Progress Sinks Corn Futures
Corn futures extended losses from yesterday once the USDA report revealed US plantings in the Mid-west happening at a rapid pace. July Corn Futures are currently down .06c (as of this writing) at the Chicago Board of Trade.
The USDA actually stated yesterday as of Sunday approximately 9% of the corn crop was planted – 2% more than the prior week. This is to be compared with nearly 6% of the domestic corn crop being planted the same time last year.
Devin Brady, President of Progressive Trading Group in Sherman Oaks, CA, shared his fundamental analysis regarding the current corn futures situation by stating, “The pace of corn plantings has picked up as farmers have been taking advantage of the favorable weather.” Brady adds, “The corn plantings, however, are still lagging behind the five year average.”
The trend for corn futures is down while the market tests its recent lows, and last months low. The seasonal tendency is for corn futures to soon rally, but with glut stockpiles world-wide, we may have a counter-seasonal trend in the works.
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 CONDITION.
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: Russell 2000 Index
DOWN Trending Futures Markets: Coffee, Euro-FX, Soymeal, Natural Gas, Sugar and Kansas Wheat & Soybeans (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 CONDITION.
Gold Futures Rally on US Data & Greek Concerns
Gold futures broke out above $1,200 late this week on the outlook of official US data indicating a possible interest-rate hike based on the strength of the economy. Then gold futures turned around for the day about $4 per ounce just under $1,198 per ounce at New York’s Commodity Exchange.
With the US dollar under pressure Wednesday after domestic industrial production showed to fall six-tenths of one percent (the largest drop since the summer of 2012, and twice as weak as economists had expected), the disappointing report rekindled speculation for the Federal Reserve Board to hold off hiking interest-rates anytime soon.
“Gold’s (futures) rebound can also be accredited with the uncertainty over Greece’s EU bailout negotiations…not to be overlooked,” said Nicholas Medina, a futures and options specialist for Capital Trading Group in Chicago, sharing his fundamental analysis regarding the current gold futures situation. Medina added, “The focus for gold traders is to see concrete economic reform or some other type of relief to alleviate the instability of her situation.”
Gold futures trend is technically up, however the market has been trading sideways for almost a month. Gold futures appear to be building a base for another breakout to the upside.
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 CONDITION.
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