Weekly commodity wrap-up

Job market shakier

The U.S. Bureau of Labor Statistics launched its latest month-to-month estimates on the U.S. employment scenario, displaying a gloomier outlook. Whereas unemployment stays at a 49-year low of three.6%, only a few new jobs are being created and wages are growing tepidly. The most recent report confirmed solely 75,000 new jobs added throughout Could, half of the current tempo.

Different financial indicators like retail gross sales and residential purchases have been slowing as nicely, indications that the U.S. financial system could also be faltering, which many economists attribute to the continued commerce disputes with China and Mexico, two of america’ largest buying and selling companions.

Financial considerations are growing strain on the Federal Reserve to decrease rates of interest, after three years of rising charges. Decrease charges may assist stimulate the financial system and wholesome ranges of inflation by making borrowing cheaper.

Following the roles report, U.S. inventory index futures climbed, an indication that Wall Road is hoping that the Fed will give the financial system a lift, serving to U.S. company income as nicely.

Gold market glistening

Gold costs shot to a one-year excessive this week, buying and selling close to $1,350 per ounce this morning. Gold is benefiting from financial considerations and expectations for decrease rates of interest, as uncertainty will increase demand for the yellow steel.

As gold climbs, it’s pulling silver costs increased, which touched a two-month excessive at $15.15 per ounce this week. In the meantime, industrial metals like platinum, palladium and copper have been languishing on considerations of slower international financial progress.

Sluggish planting continues

Midwestern corn and soybean farmers are persevering with to make sluggish progress towards planting this yr’s crops, growing expectations that hundreds of thousands of acres will likely be left unplanted.

Some non-public corporations are forecasting losses of greater than a billion bushels of corn resulting from unplanted or late planted crops, which may create the tightest provide in a long time. Market watchers at the moment are awaiting the following official forecast from the U.S. Division of Agriculture, due subsequent Tuesday.

Regardless of the continued considerations, corn and soybean costs fell this week amid the most recent commerce dispute with Mexico and market considerations that costs had gone too excessive too quick.

As of noon immediately, this falls’ December corn futures and November soybean futures traded for $four.35 and $eight.83 per bushel, respectively.

Opinions are solely the writers’. Walt and Alex Breitinger are commodity futures brokers with Paragon Investments in Silver Lake, Kan.

Copyright, Telegraph Herald. This story can’t be printed, broadcast, rewritten or redistributed with out prior authorization from the TH.

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