Metals Slip while Oil and Gas Rise

Highlights:

• ENERGY:
  WTI crude oil contracts for September delivery advanced by 0.11% at $71.99 a barrel. Brent crude contracts for September delivery gained 0.32% at $74.74.
  Natural gas gained 16.0 cents to $3.965 on Monday.
• METALS:
  During the August delivery Gold lost $2.60 to $1,799.20 an ounce. Meanwhile, September silver delivery increased by 9 cents to $25.32 an ounce.
  Benchmark copper on the LME shed 0.8% to $9,727.50 per tonne.
• AGRICULTURAL:
  Soybean and crop estimations by the US Department of Agriculture were worse than expected. Both of the commodities added 1.1% to their value.

Oil Recovers after its Initial Slump

During Monday’s trading session, the WTI pulled back only to turn around and show signs of strength again. After these movements, the market is trying to find support at the $70 level. However, people are beginning to worry about the growth of the world economy. Despite this, analysts believe that oil will continue to experience a lot of upward pressure. 

WTI crude oil contracts for September delivery advanced by 0.11% this morning and traded at $71.99 a barrel.

Brent crude contracts for September delivery gained 0.32% at $74.74. 

Meanwhile, the Organization of Petroleum Exporting Countries announced that its crude oil basket closed yesterday with a loss of 0.48% at $72.68 a barrel.

Analysts believe if the US dollar strengthens significantly, it could hurt oil because obviously, the contract is denominated in that currency. However, the alternative is for the dollar to crash, and that could push oil higher.

Natural gas yielded initial gains

Natural gas started Monday skyrocketing but turned around, showing signs of decrease. Later, gas prices have received a significant amount of downward pressure just below the $4.20 level. The market seems to have exhausted because then the prices fell to the level at $4.00. Analysts believe gas prices will experience erratic movements, but they are still mainly in an uptrend.

NGI’s Spot Gas National Average gained 16.0 cents to $3.965 on Monday.

According to EBW Analytics Group, hot summer weather in the US is forecast to extend and the potential for record demand for electricity.

NatGasWeather said that estimates Monday showed production below recent highs. At the same time, the week started with weather-driven gas consumption at elevated levels.

The weather forecast is slightly cooler for the Upper Great Lakes and New England. Meanwhile, the Southwest will experience heavy monsoon showers with very warm to hot temperatures.

Gold remains sideways

Gold for August delivery lost $2.60 to $1,799.20 an ounce.

The gold markets have tried to rise during the first part of the session on Monday.

The gold markets tried to rise during the first part of the session on Monday but have yielded profits after approaching an exponential moving average of 50 days. Right now, the price is trading near the $1800 level, so the fact that we are falling from here suggests that the $1790 support will continue to be crucial.

Silver for September delivery rose by 9 cents to $25.32 an ounce.

Copper closed a five-day winning streak

Copper closed a five-day winning streak on Tuesday, pressured by the rebounding dollar.

Benchmark copper on the LME shed 0.8% to $9,727.50 per tonne after reaching $9,924, its highest since June 15.

Investor focus shifted to a US Fed meeting to give more direction on monetary policy.

Alastair Munro at broker Marex expects a pause in the market before the Federal Reserve meeting.

Soybean and corn advanced due to adverse weather forecasts

Soybean and corn futures on the Chicago Board of Trade rose for the second consecutive day. The US government report showed that the condition of both crops worsened unexpectedly.

The market movement entirely depends on the weather condition and the prices firm after the crop condition report. However, if the weather improves, the market may lose all these gains.

The most active soybean futures contract on the CBOT advanced by 1.1% at $13.75-1/4 a bushel.

Corn also added 1.1% at $5.52.3/4 a bushel.

Meanwhile, wheat lost 0.3% to $6.75-1/4 a bushel.

US corn and soybean crops deteriorated due to dryness west of the Mississippi River.

According to the US Department of Agriculture, ratings for corn dropped by 1% to 65% in the week which ended July 25.

The soybean crop was estimated 58% good-to-excellent, losing 2% points from a week earlier, worse than expected.

Meanwhile, Europe expects torrential rains to hit the western part of the continent and damage crop quality rather than quantity.

On Monday, commodity funds were net buyers of CBOT corn and soybean futures contracts.