• Silver moves towards $20 per ounce, gold consolidates at over $1800
  • Consolidation in oil after OPEC, Russia, and other world producers taper production cuts starting in August
  • Natural gas backs off to the $1.70 per MMBtu level
  • Meats rebound along with coffee
  • Stocks higher, the dollar index and digital currencies decline

 

The leading story of the past week was another disappointing employment report as 1.3 million people in the US applied for first time jobless benefits. Fifty- one million Americans have filed for first-time benefits since March. Meanwhile, retail sales in June rose by 7.5% as stores reopened. In its Beige Book, the US Fed expressed concern about the level of unemployment in the US.

On July 15, OPEC, the Russians, and other world producers agreed to a production cut taper to 7.7 million barrels per day beginning in August. The price of crude oil did not move lower on the news, which was a sign of strength for the energy commodity.

Meanwhile, COVID-19 cases continued to climb along with fatalities, which is a threat to the health and well-being of the world and the US and global economies. Expect bouts of volatility in markets across all asset classes over the coming weeks.

Highlights in commodities:

  • August gold rose by 0.45% on the week, settling at $1810.00 per ounce
  • September silver rose 3.73% for the week as the precious metal settled at $19.764 per ounce on July 17 after trading up to $19.870
  • October platinum edges 0.44 higher on the week. October platinum was at a $960.40 per ounce discount to August gold futures, which marginally widened since last week
  • September palladium rose 3.88% and settled at $2071.70 per ounce. Rhodium was at a midpoint of $7,300 per ounce down $200 from July 10
  • September copper was 0.24% higher to the $2.9045 level since last week
  • August iron ore futures moved 3.26% higher over the past week
  • The BDI fell 6.13% since July 10 to the 1,699 level
  • August Rotterdam coal moved 1.74% higher since last week
  • September lumber was 10.51% higher since July 10 and was at the $550.80 per 1,000 board feet level
  • August NYMEX crude oil rose by only 0.10%. The August contract closed the week at $40.59 per barrel- The taper weighed on oil prices, but US inventories from the API and EIA declined providing support for the energy commodity
  • September Brent crude oil moved 0.16% lower since last week to $43.14 per barrel
  • The premium for Brent over WTI in September closed Friday at the $2.39 level as the spread was down $0.06 per barrel since last week
  • August gasoline fell 4.57% while August heating oil futures posted a 1.78% loss over the past week
  • The gasoline crack spread in August was 18.29% lower since last week. August heating oil crack moved 9.07% to the downside since July 10 as gasoline and heating oil underperformed crude oil
  • Natural gas declined by 4.82% on the August futures contract closing the week at $1.7180 per MMBtu. The EIA reported an injection of 45 bcf into storage on Thursday for the week ending on July 10- Natural gas put in a bearish reversal on July 16 on the daily chart
  • August ethanol plunged 11.36% on the week on weakness in gasoline and corn
  • November soybeans moved 0.48% higher but remained below the $9 per bushel level
  • December corn was 1.45% lower on the week
  • CBOT September wheat rose only 0.14% since last week to $5.3475 per bushel level but traded to a high of $5.5175
  • October sugar edged 0.26% lower since July 10 and closed at 11.73 cents per pound on Friday
  • September coffee posted a 5.03% gain since last week as the price was at the $1.0230 per pound level
  • September cocoa was unchanged since July 10
  • December cotton fell 3.69% since last week as the fiber futures were at the 61.94 cents per pound level
  • September FCOJ futures declined 1.47% since the previous report to $1.2730 per pound
  • August live cattle rallied 3.28% since last week to settle at $1.03275 per pound
  • August feeder cattle rose 5.12% since July 10
  • August lean hog futures recovered by 5.86% over the past week and settled at 52.80 cents per pound
  • The June dollar index futures contract fell 0.75% on the week to below the 96 level
  • September Long-Bond futures were trading at 179-26 up 0-09 for the week
  • The Dow Jones Industrial Average closes at 26,672 on Friday, July 17 up 597 points from July 10. The S&P 500 rose 1.25% since last week. The tech-heavy NASDAQ corrected to 10,503.19, down 114.25 since last week. The VIX was trading at around 25.68 on Friday down 1.61 on the back of higher stocks
  • Bitcoin was trading at $9,141.48 on Friday down $85.65 or 0.93% since July 10
  • Ethereum was trading at $232.64 on Friday, down 2.86% since the last report

 

Price Changes for the week:

 

DBC closes at $12.66 per share, unchanged since July 10

 Source: Barchart

 

DBC is the Invesco DB Commodity Tracking product which represents a diversified basket of commodities futures contracts, has net assets of $851.27 million, and trades an average daily volume of 1,016,003 shares. The fund summary for DBC states that it holds a diversified group of commodities futures but is weighted towards energy. The average volume fell, net assets were stable over the past week, and the price of the ETF did not move from July 10.

 

Any investment involves substantial risks, including, but not limited to, pricing volatility, inadequate liquidity, and the potential complete loss of principal.  This document does not in any way constitute an offer or solicitation of an offer to buy or sell any investment, security, or commodity discussed herein, or any security in any jurisdiction in which such an offer would be unlawful under the securities laws of such jurisdiction.