There was a little bit of buying around today in a couple of commodities that have certainly been bearish of recent times.
Both Crude and Soybeans posted some decent gains against a backdrop of bearish fundamentals.
Today, the U.S. Department of Agriculture reported soybean-export sales of 120,000 metric tons to China for delivery by Aug. 31 and 240,000 tons to unknown destinations.
That helped Soybeans climb 1.4%.
However we still have to remember the fundamentals here. And while this is a nice little bounce, at the end of the day that’s all it really is in our opinion.
This might be a nice opportunity to get short Soybeans.
Similarly Crude bounced on the back of inventory data.
Refinery utilization climbed along with production as inventories fell more than expected.
The data was bullish however it’s a bit hard to know what to do with Crude at these levels.
100 will no doubt be supportive and the recent run up was effectively news based.
For now watching and waiting.