{"id":3232,"date":"2018-06-16T20:30:14","date_gmt":"2018-06-17T00:30:14","guid":{"rendered":"https:\/\/www.fundamentalanalytics.com\/?p=3232"},"modified":"2018-06-16T20:30:14","modified_gmt":"2018-06-17T00:30:14","slug":"commodity-market-update-june-6-2018","status":"publish","type":"post","link":"https:\/\/www.fundamentalanalytics.com\/pt\/commodity-market-update-june-6-2018\/","title":{"rendered":"Commodity Market Update, June 6, 2018"},"content":{"rendered":"<h2 style=\"text-align: center;\">Commodity News Update<\/h2>\n<p>June 5, 2018<\/p>\n<p><strong>The goal of this report is to provide our readers with some important fundamental and technical trends in commodity markets this week.<\/strong><\/p>\n<div><strong>Energy Market Update:<\/strong><\/div>\n<div><\/div>\n<div><strong>US WTI Crude Oil Prices Drop<\/strong><\/div>\n<div><\/div>\n<div>\n<p>US WTI Crude Oil Prices have dropped from over $72 a barrel to $65 a barrel since May 25, partially because of the expectation of increased Crude Oil supplies from OPEC and Russia. See the chart below, where the black line represents 2018 prices.<\/p>\n<\/div>\n<div><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter size-full wp-image-1909\" src=\"https:\/\/www.fundamentalanalytics.com\/wp-content\/uploads\/2018\/06\/US-WTI-Crude-Prices.jpg\" alt=\"\" width=\"2880\" height=\"2140\" \/><\/div>\n<div>The US WTI Crude Oil Price dropped more than the European Brent Crude Oil price, causing the spread between the August WTI Crude Oil Price and the August Brent Crude Oil to hit a record low of -$11, meaning US WTI Crude is priced $11 below European Brent Crude. Thus, there is an arbitrage opportunity for US Brent Crude to go to Europe. The chart below shows the drop in value of the August 2018 spread between May and June, represented by the black line.<\/div>\n<div><\/div>\n<div><img decoding=\"async\" class=\"aligncenter size-full wp-image-1908\" src=\"https:\/\/www.fundamentalanalytics.com\/wp-content\/uploads\/2018\/06\/AugustWTI-BrentCrude-spread.jpg\" alt=\"\" width=\"2880\" height=\"2140\" \/><\/div>\n<div>\n<div><strong>Agriculture Market Update<\/strong><\/div>\n<div><\/div>\n<div><strong>Corn:<\/strong><\/div>\n<div><\/div>\n<div>\n<p>According to the latest Foreign Agriculture Service (FAS) report, as of May 24, 2018,\u00a0the Corn Accumulated Exports was 37,557,206\u00a0metric tons.\u00a0The Total Accumulated Export chart below shows that, if the new trend continues, the Accumulated Exports could reach the record level of the 2017 market year (represented by the red line on the first chart below).\u00a0World Demand for corn is strong and US corn prices are relatively low, encouraging foreign purchasing of US corn. See the charts below, where the black line represents the current market year.<\/p>\n<\/div>\n<div><img decoding=\"async\" class=\"aligncenter size-full wp-image-1905\" src=\"https:\/\/www.fundamentalanalytics.com\/wp-content\/uploads\/2018\/06\/corn-accum-export.jpg\" alt=\"\" width=\"2880\" height=\"2140\" \/> <img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-1907\" src=\"https:\/\/www.fundamentalanalytics.com\/wp-content\/uploads\/2018\/06\/Corn-prices-year-on-year.jpg\" alt=\"\" width=\"2880\" height=\"2140\" \/><\/div>\n<div>\n<div><strong>Soybeans:<\/strong><\/div>\n<div><\/div>\n<div>\n<p>Similarly, according to the latest Foreign Agriculture Service (FAS) report,\u00a0the Soybeans Accumulated Exports was 46,088,141\u00a0metric tons.\u00a0The Total Accumulated Exports chart below shows that\u00a0exports are strong, although the seasonal trend tends to flatten during this coming period in the market year, so we do not expect Accumulated Exports to reach the level of 2017 (represented by the red line on the first chart below).\u00a0However, as we mentioned above with corn, World Demand for soybeans is strong and US soybeans prices are relatively low, encouraging foreign purchasing of\u00a0soybeans. See the charts below, where the black line represents the current market year.<\/p>\n<\/div>\n<\/div>\n<div><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-1904\" src=\"https:\/\/www.fundamentalanalytics.com\/wp-content\/uploads\/2018\/06\/Beans-Acc-Exports.jpg\" alt=\"\" width=\"2880\" height=\"2140\" \/> <img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-1906\" src=\"https:\/\/www.fundamentalanalytics.com\/wp-content\/uploads\/2018\/06\/Soybean-year-on-yaer.jpg\" alt=\"\" width=\"2880\" height=\"2140\" \/><\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Commodity News Update June 5, 2018 The goal of this report is to provide our readers with some important fundamental and technical trends in commodity markets this week. Energy Market Update: US WTI Crude Oil Prices Drop US WTI Crude Oil Prices have dropped from over $72 a barrel to $65 a barrel since May [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3232","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.fundamentalanalytics.com\/pt\/wp-json\/wp\/v2\/posts\/3232","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fundamentalanalytics.com\/pt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fundamentalanalytics.com\/pt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fundamentalanalytics.com\/pt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fundamentalanalytics.com\/pt\/wp-json\/wp\/v2\/comments?post=3232"}],"version-history":[{"count":1,"href":"https:\/\/www.fundamentalanalytics.com\/pt\/wp-json\/wp\/v2\/posts\/3232\/revisions"}],"predecessor-version":[{"id":3233,"href":"https:\/\/www.fundamentalanalytics.com\/pt\/wp-json\/wp\/v2\/posts\/3232\/revisions\/3233"}],"wp:attachment":[{"href":"https:\/\/www.fundamentalanalytics.com\/pt\/wp-json\/wp\/v2\/media?parent=3232"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fundamentalanalytics.com\/pt\/wp-json\/wp\/v2\/categories?post=3232"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fundamentalanalytics.com\/pt\/wp-json\/wp\/v2\/tags?post=3232"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}