The Base Metal Blues

The world’s eighth-largest aluminum maker, Alcoa, threw investors for a loop on Monday, unexpectedly announcing a new chief executive officer (CEO). 😮

Roy Harvey has led the company since November 2016, when it went public, and will remain a strategic adviser until the end of 2023. He’ll be replaced by William Oplinger, who has served as executive vice president and chief operations officer (COO) since February of this year.

Although the company says this reflects its “succession planning process,” the market seemingly did not expect a change. However, it’ll likely have to wait until the company reports third-quarter results in mid-October for more color on the change and potential impacts. 📝

$AA shares fell 6% on the day to fresh 2.5-year lows. It has now given back 70% of its October 2020 to March 2022 gains. 😬

Other companies in its space have not fared particularly well this year either. Although the commodity sector has performed well in aggregate, most of the strength has come from energy and agriculture. The chart below shows the base metals ETF lagging its peers year-to-date, falling nearly 5%. 📉

We’ll have to wait and see if things improve. However, the global economy slowing down will remain a headwind for the group, including copper, aluminum, and zinc. 🤷

Cotton’s Breakout Poses Problems

We know many of you are rolling your eyes at the title of this post because you’re thinking, “I trade and invest equities; why should I care about cotton prices?” And you’re right; you generally shouldn’t care. But commodities matter to the broader market when they’re at inflection points, which may be the case for cotton. 🤔

Give us a second to explain, and we promise it’ll all come together…

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Precious Metals Slowly Melt Lower

With the stock market catching its breath before a new earnings season begins, we’ve been trying to highlight other market trends. And right now, one of those is in the precious metals section of the commodities space. 👀

Gold, silver, platinum, and palladium are all considered precious metals for those unfamiliar. These metals are rare, naturally occurring metallic chemical elements of high economic value…hence the name. *cue the Gollum “my precious” meme.*

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Sugar Hits Sweet Spot As Gold Shines

It was a slow day out there, but several commodities caught traders’ eyes. Let’s see which ones. 👀

First up is sugar futures, which have experienced a nearly 30% decline since the beginning of November. While its major decline is one reason to be on people’s radars, technical traders say prices have reached the 20-20.50 area that served as an inflection point over the last two years.

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Traders Eye Gasoline Prices

Despite being a slow day overall, one chart in the commodities space had traders gassed up. Pun intended. 🙃

That commodity is gasoline, which is heavily tracked due to its impact on consumer confidence and the economy. And most recently, there’s been a significant decline in prices that’s helped cheer people up ahead of the holidays—case in point: the headlines below. 👇

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