【Fuji Tomi】Chicago grains fall across the board

(NY Precious Metals)
On the 20th, in a mixed trading session for New York gold, prices edged higher slightly. New York gold nearby June contract closed up 0.4 dollars at 1,283.8 dollars, and New York platinum nearby July contract closed up 10.9 dollars at 981.2 dollars.
Appreciation of the sharp rise in NY Dow led to a sharp rally in NY palladium, and platinum followed suit with a sharp rebound. This bullish tone supported NY gold, which held steady around the 1,280-dollar level. Although the Dow’s surge and NY silver’s plunge could have been negative for gold, the rapid rise in palladium and limited selling kept selling subdued. Below 1,280 dollars, speculative buying ahead of France's weekend presidential election was also observed.

(WTI Crude Oil, NY Gasoline & North Sea Brent)
On the 20th, WTI crude oil closed slightly lower. WTI nearby June contract finished down 0.14 dollars at 50.71 dollars, North Sea Brent nearby June contract rose 0.06 dollars to 52.99 dollars. RBOB gasoline May contract rose 1.15 cents to 167.05 cents, NY Heating Oil nearby May contract fell 0.24 cents to 157.89 cents.
A rebound from the previous day’s sharp drop occurred but remained a self-correcting bounce, and price resistance kept the market from turning around from its lows; the June WTI nearby once again fell below 51 dollars. If the May nearby contract, which is the nearest month for settlement, declines toward the weekend, a wider spread and further decline are likely. Concerns about tighter supply due to expectations of increased US crude production weigh on the market, so further downside is anticipated. While demand for gasoline has been weaker than expected, the NY Dow’s sharp rise has sparked some upside for NY gasoline, though consumer spending weakness keeps improvement in gasoline demand elusive. OPEC and other producers’ extended production cuts are anticipated, but unless further cuts are actually implemented, it may not fully support prices given potential US production growth; thus, extending cuts alone may not be enough to provide sustained support.

(CBOT Soybeans)
CBOT soybeans on the 20th closed lower, with losses widening into the new-crop months. Nearby May contract fell 3.50 cents to 946.75 cents, new-crop November contract fell 4.75 cents to 953.50 cents.
USDA weekly export sales came in below expectations, reinforcing expectations of weak US soybean demand. Additionally, improved weather in the US Corn Belt is fueling expectations of future soybean planting, leading to selling pressure in the nearby month. Nearby May contract fell below 9.50 dollars, and the near-term 7 July contract trading near 9.50 dollars is seen as a near-term downside target.

(CBOT Corn)
CBOT corn ended the day with further declines, continuing to move lower. Nearby May contract fell 4.50 cents to 357.25 cents, new-crop December contract fell 4.75 cents to 381.75 cents.
Chicago wheat has plunged, but favorable growing conditions in the US Plains are expected to improve yields. The US Corn Belt’s weather also looks ideal for planting, triggering fund selling and wiping out gains in both corn and wheat. The May nearby corn contract briefly fell below 3.60 dollars, but near-term trading is expected to head toward 3.50 dollars ahead of the first notice day at month-end. Although new-crop months have seen larger declines, improved planting conditions suggest a higher likelihood of acreage shift.
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