【Fujitomi】Chicago grains fall across the board

（New York Precious Metals）
On the 6th, New York gold rebounded but the gain narrowed. New York near-month June gold futures were up 4.8 dollars at 1,253.3 dollars, while New York near-month July platinum futures were down 0.7 dollars at 958.9 dollars.
Triggered by the FOMC minutes, the Dow Jones fell sharply, and gold was bought as a hedge; after the session resumed, the level rose into the 1,260-dollar range. The minutes noted asset reduction, leading to concerns about further rises in U.S. long-term interest rates, contributing to a stock sell-off. Normally, rising interest rates are negative for gold, which does not yield returns, so concerns about gold’s outlook grew, making the 1,260-dollar level an attractive area to sell, and the gains subsequently narrowed. It had been around the 1,250-dollar level, but with the U.S.-China leaders' meeting in view, risk-averse buying supported it. With weekend U.S. jobs data in mind, the movement of interest rates seems likely to be sensitive in the near term, and a break below 1,250 dollars is also being watched with concern.

（WTI Crude Oil • NY Oil Products • North Sea Brent）
On the 6th, WTI crude oil rose again. WTI near-month May futures were up 0.55 dollars to 51.70 dollars, North Sea Brent near-month June futures were up 0.53 dollars to 54.89 dollars. RBOB gasoline May futures were up 1.43 cents to 172.96 cents, NY heating oil near-month May futures were up 0.94 cents to 161.29 cents.
New York gasoline is rebounding on expectations of seasonal demand, supporting WTI and Brent to advance. Despite the U.S. EIA inventory data showing gasoline demand weakening during the demand season, the Dow’s recovery led to renewed speculative buying. U.S. crude output continues to rise, but expectations for gasoline demand remained stronger, favoring buying. However, with WTI also benefiting from a continued increase in U.S. production and improved Libyan output, 52 dollars is viewed as a significant near-term resistance. Brent has extended up to exactly 55 dollars, suggesting near-term upside is being tested. Monitor U.S. stock movements, while there is continued vigilance for further increases in drilling rigs by Baker Hughes near the weekend, which has been observed around current highs.

（CBOT Soybeans）
On the 6th, CBOT soybeans declined, closing near the low. Near-month May futures were down 5.75 cents to 938.50 cents, new crop November futures were down 6.50 cents to 947.50 cents.
The declines widened toward the close, with technical selling hitting, and near-month May futures falling again into the 9.30-dollar range. There had been expectations of large U.S. soybean bookings from President Xi’s visit to the U.S., but the Trump administration’s stance was viewed as tough, causing speculative demand to gradually recede and leading to a retreat from recent highs. Caution ahead of the supply-demand report due on the 11th remains, and the market mood suggests a continuing soft trend, contributing to the early drop.

（CBOT Corn）
On the 6th, CBOT corn declined due to technical selling. Near-month May futures were down 4.00 cents to 360.75 cents, new-crop December futures were down 3.75 cents to 385.50 cents.
Selling continued into the close, and corn followed the same pattern as wheat, which had fallen sharply on technical selling. Although the U.S. Department of Agriculture released strong weekly export sales, market interest was tepid, with ideal weather and shifting planting expectations weighing on corn in the U.S. Midwest. Near-month May futures again fell below the 200-day moving average, with expectations of testing the 3.60-dollar level. Rain was observed in the Midwest midweek, but with temperatures rising sharply toward the weekend and early next week, the rain was viewed as a boon.
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