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Riding the Silver Swing
Silver prices were holding in the $60 to $62 range on Friday, falling from a high of $64.70 on Monday. Prices have experienced wild swings, peaking above $71 in late August and then pulling back 10% to 15% from that late summer high. Uncertainties of further Fed tightening or even more gradual easing encourage holding metal such as silver. Some of silver's value rests in its use in green energy transitions (photovoltaic/solar technology) and data centers powering AI due to silver's unmatched electrical conductivity.
Prices Slip on Oil
Oil prices dropped sharply by early Friday as West Texas Crude fell 4% to the $89 range per barrel. Brent oil slipped 3% to around $99. Several factors caused the drop. G7 nations and the International Energy Agency agreed to consider releasing 100 million barrels from emergency reserves to slow tightening fuel markets. Moreover, Middle Eastern crude exports have increased. Also, US job data showed fewer September jobs causing broader macroeconomic growth concerns. The sharp drop in crude at week's end was counter intuitive considering that President Trump announced sending an additional aircraft carrier and 10,000 more troops to the Persian Gulf to potentially escalate attacks on Iran.
Crop Report Hammers Grains
Last Tuesday's USDA crop report indicated that the size of our U.S. corn, wheat and soybean crops is larger than analysts expected and greater than demand can support at this time. Being in the middle of harvest adds more supply and urgency to farmer selling, so the price decline accelerated all week. A lack of follow-through news from the Ji - Trump meeting added bearish sentiment from the demand side. Corn for December delivery fell by over 30 cents per bushel from Friday to Friday.
Girl Flies to be Sterilized
The USDA announced this week an expansion of the sterilized screw worm release to include female flies as well as the males which had been the focus thus far. This should make the program more efficient, save taxpayers money and ensure the New World Screw Worm will not spread within our borders. In the meantime, a new invasive species, the Pasture Mealy Bug, is also pestering Texans by destroying productive grazing land in 70 counties.
CME midday prices - November Soybeans, $12.80; December Corn, $4.99; December Wheat, $6.84. Livestock per 100 pounds: October Cattle, $219; October Hogs, $78.70. Metals per troy ounce: December Gold, $4,160; December Silver, $60.45, December Copper per pound: $6.55. November Crude oil per barrel: (WTI) $91.60. September S&P futures traded at 7774.
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Walt Breitinger is a commodity futures broker in Indiana. He can be reached at 800-411-FUTURES (3888) or www.indianafutures.com.
Pinion Futures, LLC, a CFTC registered Introducing Broker and NFA Member (NFA #0284447,) is a fully owned subsidiary of Pinion Risk Management LLC. Information contained herein is believed to be reliable but cannot be guaranteed as to its accuracy or completeness. Futures and options trading involve substantial risk of loss and is not suitable for all investors.