Precious metals recovered while gas is soaring 

Highlights:

• ENERGY:
  Brent crude dropped by 0.2% or 16 cents to $80.92 a barrel. WTI crude oil futures lost 0.4% or 30 cents to $77.13 a barrel on Wednesday.
  December natural gas futures were trading with a rise of 0.60% or $0.035, at $5.838.
• METALS:
  Gold was trading flat at $1761/oz, while silver added 0.21% to $22/64/oz.
  Copper gained 2.01% at $9,227 a tonne on LME.
• AGRICULTURAL:
  On CBOT, corn increased by 0.4% to $5.34-1/4 a bushel. Meanwhile, soybeans advanced by 0.3% at $12.46 a bushel.
  

Crude oil has given up the gains

Crude oil extended losses posted on the previous day. Brent crude dropped by 0.2% or 16 cents to $80.92 a barrel. WTI crude oil futures lost 0.4% or 30 cents to $77.13 a barrel on Wednesday. 

Analysts think that the decline was necessary since the rise was very exaggerated. A correction will offer traders a good buying opportunity because the fundamentals are still bullish and this may allow them to buy at lower levels. 

A larger-than-expected drop in US crude inventories last week also influenced prices.

Earlier in the week, OPEC and its allies agreed to stick to the plan to increase production by 400,000 BPD in November. It supported crude oil prices and sent to multi-year highs. The group’s decision partially was caused by the concern that the demand and the prices would decline. 

Natural gas is at record levels around the globe

The natural gas prices reached record levels in Europe and Asia. Meanwhile, China struggles to meet demand. 

After hitting brutal highs in the previous session, natural gas futures were trading almost flat today. That pattern has not turned into a bearish trend. However, analysts think that the bulls have liquidated positions and new sellers have entered the market.

Traders indicated that the factor behind the crash was falling prices in Europe. Meanwhile, supply is rapidly improving in the US. Natural Gas Intelligence also reported a decline in spot gas prices amid a weather forecast of moderate temperatures for much of the 48 federal states.

December natural gas futures were trading with a rise of 0.60% or $0.035, at $5.838.

NGI stated that despite rumors abroad about a possible power shortage this winter, the levels of accumulated reserves in the United States improved a lot in the last month. 

Even though reserves were below the five-year average, meteorological predictions of a mild climate will allow them to increase rapidly.

Gold and silver are trading mixed

Gold and silver were trading flat at the beginning of the trading day. Gold was trading flat at $1761/oz, while silver added 0.21% to $22/64/oz.

Yesterday, the gold futures contract managed to recover and close in positive territory. Investors continue without committing themselves in any direction in the days before the publication of the employment report. It has been difficult to predict the number and importance it could have on short-term monetary policy decisions.

The employment report is characterized by generating strong reactions in the prices of most financial assets, especially in the current environment.

In the monthly report on gold published by Bloomberg Intelligence this month, the company’s analysts note that, after peaking last year, the price of gold will return to that level very soon. Analysts believe that it’s just a matter of time. The all-time high for gold is above $2,060 an ounce, reached during August 2020.

Stock rebound supports copper prices

Copper prices increased ahead of China’s reopening after a holiday, following a rise in the stock markets. 

Copper gained 2.01% at $9,227 a tonne on LME.

Analysts believe that the red metal is likely to keep falling until demand starts recovering. So, if you are considering trading copper, it’s not a good idea for the short term. However, the placement will probably pay off in the long term. 

In the LME warehouses, copper stocks slipped to 82,850 tons from 168,075 tons as of September 21. Meanwhile, inventories in the Shanghai Futures Exchange stood at 43,525 tonnes. It is their lowest level since 2009.

Soybean futures rebound

The FYO report highlighted that soybean futures began the day slightly higher in Chicago after falling in the previous session. The report stated that higher production and stock estimates in the United States for the next USDA monthly report could limit market gains.

The report indicated that corn traded with a mixed balance. The market expects lower yields and US production for the next USDA report. However, projections of a slight increase in ending stocks limit the increases. 

On CBOT, corn increased by 0.4% to $5.34-1/4 a bushel. Meanwhile, soybeans advanced by 0.3% at $12.46 a bushel.