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.

They’re looking for prices to dig in here and potentially retrace some of this steep decline over the coming days and weeks. 💵

Meanwhile, on the other end of the spectrum, we’ve got gold futures trying again to break out above resistance near 2,090. The precious metal gave it a go earlier this month, but was unable to close above that level it failed at several times over the last few years.

With volumes being lighter during this holiday trading period in the markets, some traders say this is a great opportunity for buyers to step in aggressively and complete this breakout. 🐂

We’ll have to wait and see how these play out. But in the commodities space, these two charts are some of the most widely talked about in our community. 💬

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Cocoa and OJ Futures Keep On Rolling

It was a slow day out there, so we’re back with everyone’s favorite topic: commodity futures. 🙃

At the end of August, we discussed cocoa futures following in orange juice futures’ footsteps and breaking out to new all-time highs. Since then, weather conditions and crop outlooks have not improved, causing prices to rise even further.

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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.

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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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Breakfast Is Getting More Expensive

Some say breakfast is the most important meal of the day. But unfortunately, the commodity markets are saying that prices to fill your bowls and cups each morning could be heading higher. 🥣

If we look at Finviz’s year-to-date performance chart for the major assets tracked by the futures markets, four of the top five gainers are agricultural commodities. Orange juice leads the pack, rising 84.53%, followed by sugar (+44.2%), Cocoa (+39.68%), and Oats (+30.10%). They’re only separated by the Nasdaq 100, which is up 36.91%.

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