Thursday commodities market opened with crude oil prices hitting record six-week lows due to existing oversupply in the global market and OPEC’s helplessness in getting its members to implement agreed cuts.
WEST TEXAS INTERMEDIATE
WTI prices Thursday began the day at $44.43, a six-week low. The day’s high was $44.81 and so far, the steady point have been around $44.60s, with huge likelihood of further drop before the market closes.
Prices opened at $46.70, also a six-week low but have seen slight recovery and are currently trading at $46.80. Prices crossed the $47.00 level on a day high before staying around $46.92 at 07.09am EDT, with little movement up or down.
Prices began Thursday on a positive note at £1,610.78, up by £3.46 where they closed on Wednesday. The prices have however dropped by £7.88, trading at £1,599.44.
Prices opened Thursday at $1.26, unchanged from how they closed on Wednesday and so far, have remained on same spot, signaling that coffee’s big fall from its 52-week high of $15.69 persists.
Prices remained at $3.77 on Thursday, same as they were at the close of trading Wednesday with only a $0.01 high so far.
The big story in the market remains weather. Storms brought rains to the eastern Dakotas Tuesday, with the system moving through the western Corn Belt Wednesday.
According to the US Agricultural Marketing Services, AMS, in its Weekly Cotton Market Review, Cotton prices will be lower than the average due to inactive trading, light supplies and producer offerings and moderate demand.
Thursday prices began on a negative note, at $0.73 having closed at $0.74 on Wednesday. So far, prices have remained on $0.73 in line with the forecast.
Improving weather conditions have continued to weigh on soybean futures as traders have decided to lock in profits from recent rallies. “We have a little more precipitation in the forecast. That’s really what is weighing on things,” Chad Henderson, a grain market advisor with Prime Agricultural Consultants said in his analysis, as monitored on CNBC.
Soybean prices once again opened at $9.32, same as the closing prices of Tuesday and Wednesday. The day’s high has been $3.39 after an initial drop to 3.29.
Like soybean, wheat prices are also under pressure from weather forecasts. The prices began Thursday at €169.75, a little over Wednesday’s closing prices of €169.50. The prices have stayed on Thursday’s high of €170.00, with little upward or downward movement.
After the announcement by the Federal Reserve Wednesday that it had decided to increase key short-term interest rate by a quarter-point to a range of 0.75% to 1%, gold prices rallied but it was not much of a big leap.
According to Ross Norman, chief executive officer at Sharps Pixley, in his email to MarketWatch, the gold market got itself going into the Federal Reserves’ announcement, and traders saw a good short covering that prices will fall in value. The short covering usually accelerates an asset’s gains as investors making short bets are forced to buy the asset back at higher prices in order to mitigate losses from gains.
Gold prices opened on a negative on Thursday, at $1,260.38, dropping by $20.85 to $1,281.45, Wednesday’s closing prices. From the day’s high of $1,266.53, prices dropped to $1,258.82, showing signs of further slide.
Silver markets steadied around the $16.90s, a far cry from the $17.50 experts had forecasted earlier in the week. Prices closed on $16.91 Wednesday, opening on same prices on Thursday and reached a day’s high of $17.08 before settling around the $16.80 level for much of early trading periods.
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Frontpage December 4, 2018