【FujiTom】NY gold rises, recovers to the 1260-dollar range

Ny precious metals
On the 22nd, New York gold was bought as a safe asset again, recovering to the $1260s. The New York near-month Gold June contract was up $7.8 from last week’s close at $1261.4, and the New York near-month Platinum July contract was up $10.1 to $950.3.
The strong mood of the Dow remained, and while it was seen as a factor that could pressure gold, hedge buying against the stock market’s strength was also observed. Housing and auto sales were weak, but with excess liquidity pushing stock prices higher, gold was also bought in tandem; high-price cautiousness was present as well. The uncertain outlook for the Trump administration naturally provided a bullish factor. Since Memorial Day on the 29th, testimony by former FBI Director Comey before Congress was scheduled, and many believed it would severely impact President Trump’s position. Palladium, which had fallen earlier in the week, rebounded from its lows on the strong Dow, while the $950 level for platinum also gave reassurance to buyers in the gold market.

(WTI crude oil, NY petroleum products, North Sea Brent)
On the 22nd, WTI crude oil rose further on expectations that oil-producing countries would widen production cuts. The WTI near-month July contract was up $0.46 to $51.13, Brent near-month July was up $0.26 to $53.87. RBOB gasoline July was up 1.05 cents to 165.83 cents, and NY heating oil near-month July was up 1.98 cents to 160.82 cents.
At the OPEC Economic Commission meeting held last week, in addition to extending cuts, widening the cuts was discussed, and it was decided to be considered at the OPEC summit on the 25th, which led to a higher start to the week. There were also comments from Saudi Arabia about widening the cuts, strengthening the market’s bullish expectations. However, currently, only Saudi Arabia is achieving the current production targets, and this move appears aimed at an announcement effect; there is also a sense of reluctance toward actual production reductions, so further upside remained limited, and WTI July temporarily fell sharply to as low as $50.75 before recovering to the $51 range. The market continued to see heavy resistance at higher levels.

(CBOT Soybeans)
On the 22nd, CBOT soybeans rose on the back of unfavorable weather in the U.S. Midwest, focusing on the near-month. The near-month July was up 4.75 cents to 9.575 dollars, and the new-crop November was up 6.00 cents to 9.575 dollars.
Last week, soybeans hit a one-month low, influenced by a sharp depreciation of the Brazilian real, which made value-buying easier. Over the weekend, rainfall was generally adequate across the U.S. Midwest, and some noted the possibility of late planting. The consensus for the national average planting progress to be announced after the Chicago close was 52% (vs 32% last week). Soil moisture overabundance was also noted in the eastern Midwest, which is a major soybean-producing region, so markets remain wary of future weather. Export demand remained weak, and the near-month July remained around the $9.60 level only briefly. Today, the funds were estimated to be buyers of about 3,000 contracts.

(CBOT Corn)
On the 22nd, CBOT corn rose slightly. The near-month July was up 2.75 cents to 375.25 cents, and the new-crop December was up 2.75 cents to 393.00 cents.
It rose to its highest in three weeks briefly, but concerns about planting delays due to recent widespread rains led to some selling. After the Chicago close, the consensus for the national average planting progress was 85% (vs 71% last week). However, since the long-term average progress is about 85%, a definite planting delay is not guaranteed, and at high levels, profit-taking selling was observed. Attention is on the progress in the eastern U.S. Midwest, where planting delays are feared. The near-month July’s price gains were capped by the upper boundary of the Ichimoku cloud, limiting the upside. Today, funds were estimated to be buyers of about 8,000 contracts.
https://www.fujitomi.co.jp/?p=15342