Oct 2, 2017 - Weekly Commodity - Opportunities ahead in Crude, Corn and Sugar as well

Commodity markets are currently in a difficult situation as combination of fundamentals and stronger dollar both added pressure. However the technical picture reveals medium term opportunities in all three commodities we follow.

The crude oil had a nice rally behind but despite promising news about growing demand, could hold recent highs. During the brent driven rally the spread between WTI and Brent widened to 7 dollars. Despite the gap tigthened to 5 dollars, Brent seems to offer a better shorting still with Money manager longs close to record highs.

Corn had a bumpy summer, but the most traded December contract seems to bottomed out recently unable to drop significantly below 350 cents. On weekly chart you can spot a triangle which is often on that timeframe a signal that the reversal is close. The harvest during coming weeks will reveal whether USDA or traders were right regarding the US corn yields. If USDA was to optimistic, corn may rally well above 400 cents per bushel with the helps of traders covering record shorts.

After the introduction of the ethanol import tax in Brazil the raw sugar could not find the enoguh support to rally significantly. One of the reasons is the expected increase of the European sugar exports and the other is the Indian sugar production that rebounced from last years drop. However analysts say that the sugar market will end in deficit next year and this may add some bull power. Here again record shorts of money managers can play key role in breaking the 15 cent level.

Good Luck and remember to watch your risk and be consistent

Mr. Tech Man

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