Wednesday, July 8, 2009

Turning Bullish On The Dollar?

Commodity Roundup for July 8, 2009

Turning Bullish on the Dollar?

  • Traders are realizing the gap between expectations and reality of recovery may have gotten too wide
  • Corn prices have pulled back over 10% recently on larger than expected USDA acreage estimates and favorable weather conditions
  • Soybeans prices are under pressure as falling oil prices make the prospects for soybean –based biodiesel less attractive to consumers
  • Gasoline stocks rose 1.9 mmbls last week, also more than expected Gasoline production was up 13,000 bpd and imports jumped 228,000 bpd. Demand rebounded by 176,000 bpd, but four-week average demand of 9.191 mmbpd is off 1.4% unrevised figures from a year ago. Total petroleum inventories were up 5.1 mmbls last week.
  • Gold prices moved sharply lower during today’s session as rumors are circulating that the Obama Administration and Congress have agreed to allow the IMF to sell portions of their gold holdings
  • U.S. Dollar Index was under some pressure during the morning session of trading and gained strength in afternoon trading only to give back its afternoon gains in the last hour of trading

Key Technical Levels

GLD Resistance: 91.90; 93.00 Support: 89.90 – 90.00; 89.00
DBA Resistance: 24.50; 25.00; 25.60; 27.15 Support: 24.00; 23.00; 22.30

UUP Resistance: 24.30 (50 MA); 24.45; 24.55; 24.85 Support: 23.65; 23.45

USO Resistance: 34.00 – 34.50; 36.00; 37.30 Support: 33.00 – 33.25

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