【Fuji Tomi】Overseas crude oil continues to rise, but prices retreat from highs

(NY Precious Metals)
On the 11th, New York gold showed movement around $1,220 as it was bought as a safe asset. The near-month NY gold June contract was up $5.3 at $1,224.20, and the near-month NY silver July contract was up $7.8 at $917.70.
Uncertainty about the Trump administration was being watched, and as a risk factor, buying continued. The dismissal of FBI Director Comey could develop into a major problem that unsettles the administration, making the administration’s outlook opaque and attracting buying above the $1,220 level. A pause in dollar strength also served as a reminder of risk. However, concerns about U.S. rate hikes remained, and at present, many see a recovery to the $1,230s as difficult. NY silver also extended gains but, from a high, lost much of its value, showing unstable price movement below $910.

(WTI Crude Oil, NY Oil Products, North Sea Brent)
On the 11th, WTI crude oil rose further. The WTI near-month June contract was up $0.50 at $47.83, and the Brent near-month July contract was up $0.55 at $50.77. RB0B gasoline June contract was up 2.26 cents at 156.22 cents, and NY heating oil near-month June contract was up 1.45 cents at 148.99 cents.
As on the previous day, the strength of NY gasoline served as a major supportive factor for the crude market, with gasoline leading and lifting crude as well. Saudi Arabia announced a reduction in its crude supply to Asia, which was viewed as an effort to balance supply and demand and supported the market. However, with US crude oil exports to Asia rising, it remains unclear whether Saudi’s move will correct the balance, and WTI could not stay in the $48 range. A large draw in U.S. EIA crude stocks was viewed favorably, but since it was driven by a sharp drop in U.S. crude imports, ongoing U.S. production increases were expected to cap upside due to U.S. production pressures. In the near term, traders awaited Baker Hughes’s weekly rig count for crude.

(CBOT Soybeans)
On the 11th, CBOT soybeans fell again. The near-month July contract was down 4.75 cents at 965.50 cents, and the new-crop November contract was down 3.50 cents at 963.25 cents.
In the U.S. Midwest, soybean planting is about to intensify, but favorable weather forecasts for planting are guiding funds to sell, further erasing prices. Like corn, producer selling was evident, but amid growing concerns about long-term oversupply, Chicago prices are seen as high. The USDA’s weekly export sales were weak, and as South American exports accelerate, U.S. export demand is expected to remain weak for a while. Some suggested the July near-month could fall below $9.60 per bushel.

(CBOT Corn)
On the 11th, CBOT corn fell, and declines widened toward the close. The near-month July contract was down 4.50 cents at 369.25 cents, and the new-crop December contract was down 4.25 cents at 387.25 cents.
With improving weather in the U.S. Midwest, rapid planting progress was expected from weekend into early next week, which pressured prices as farmers sold. Although the USDA’s latest supply-and-demand report was not surprising, technical buying pushed prices up aggressively, which in turn encouraged more farmer selling. The USDA’s morning weekly export sales were quite weak, contributing to early downside pressure. As sunny weather is forecast for the Midwest from weekend into early next week, many expect further Chicago-area declines.
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