Dan Flynn is the writer of The Corn & Ethanol Report, a daily market letter covering grains, energies, and various global issues that are the driving force and backbone of the commodity markets. Contact Mr. Flynn at (312) 264-4374
We start off the day with Building Permits Prel, Building Permits MoM Prel, Housing Starts, and Housing Starts MoM at 7:30 A.M., Redbook YoY at 7:55 A.M., Industrial Production MoM & YoY, Capacity Utilization, and Manufacturing Production MoM & YoY at 8:15 A.M., 42-Day Bill Auction and 52-Week Bill Auction at 10:30 A.M., and API Energy Stocks at 3:30 P.M.
With inflation rocketing out of control and being on the brink of war physical gold and gold futures have repeatedly set new record highs, starting in early March, as buyers seek a home for cash to avoid lost purchasing power in US dollars. Last week, nearby gold futures reached a record high of $2,429/oz. The latest Commitment of Traders report showed that the week ending Apr 9th, funds bought 929 contracts of gold futures and held the largest net long position since July 2020. This is compared to commercial buying of 1,226 contracts, which resulted in a &82.50 price change for the week. The rally in gold prices appears to be much about limited commercial selling. In fact, commercials have been net buyers for the last month. With the US now adding $ 1 trillion in debt every 100 days in this out of sight-out of mind economy. Inflation rates are expected to rise in the coming months further robbing the US dollar for purchasing power. As such, Chinese demand for gold stays strong. In the overnight grain futures started out firmer but sold off due to strengthening US dollar. China’s economy grew at a better than expected 5.3% in the 1st quarter of 2024 on a 14% gain on exports year-over-year. However, Chinese retail sales grew by just 3.1%, which was lower than expectations of 4.6%. The Chinese GP growth helped bump grain/oilseed futures initially higher, but the strengthening dollar acted to tug commodities to weaker morning levels. Geopolitical fears are now also in the mix with runaway inflation and the usual suspects with seedings started and we will watch South American weather and monitor any movement of Ukraine product into the next phase of the US growing season.
Inflation Nation Everywhere. The Corn & Ethanol Report 04/16/2024
We start off the day with Building Permits Prel, Building Permits MoM Prel, Housing Starts, and Housing Starts MoM at 7:30 A.M., Redbook YoY at 7:55 A.M., Industrial Production MoM & YoY, Capacity Utilization, and Manufacturing Production MoM & YoY at 8:15 A.M., 42-Day Bill Auction and 52-Week Bill Auction at 10:30 A.M., and API Energy Stocks at 3:30 P.M.
With inflation rocketing out of control and being on the brink of war physical gold and gold futures have repeatedly set new record highs, starting in early March, as buyers seek a home for cash to avoid lost purchasing power in US dollars. Last week, nearby gold futures reached a record high of $2,429/oz. The latest Commitment of Traders report showed that the week ending Apr 9th, funds bought 929 contracts of gold futures and held the largest net long position since July 2020. This is compared to commercial buying of 1,226 contracts, which resulted in a &82.50 price change for the week. The rally in gold prices appears to be much about limited commercial selling. In fact, commercials have been net buyers for the last month. With the US now adding $ 1 trillion in debt every 100 days in this out of sight-out of mind economy. Inflation rates are expected to rise in the coming months further robbing the US dollar for purchasing power. As such, Chinese demand for gold stays strong. In the overnight grain futures started out firmer but sold off due to strengthening US dollar. China’s economy grew at a better than expected 5.3% in the 1st quarter of 2024 on a 14% gain on exports year-over-year. However, Chinese retail sales grew by just 3.1%, which was lower than expectations of 4.6%. The Chinese GP growth helped bump grain/oilseed futures initially higher, but the strengthening dollar acted to tug commodities to weaker morning levels. Geopolitical fears are now also in the mix with runaway inflation and the usual suspects with seedings started and we will watch South American weather and monitor any movement of Ukraine product into the next phase of the US growing season.
Have An Excellent Trading Day!
Thanks,
Questions? Ask Dan Flynn today at 312-264-4374Daniel Flynn