Wheat:
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Wheat prices remain high despite the mixed data regarding supply
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High quality of spring wheat crops, an increase in case of winter wheat
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Quality of spring wheat in the US has reached the highest level since 2010, there is a possibility to see a further rally
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Rainfall in some EU countries helps improve crops quality
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Despite relatively dry weather quality of crops in France has been rated at 79% recently
Quality of spring wheat crops in the US is rated at 83%, the highest for many years. Source: Bloomberg
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Open account Try demo Download mobile app Download mobile appWheat prices are falling back in response to the above-mentioned data. Another WASDE report, due next week, should not offer to many reasons to cheer for bulls. Source: xStation5
Coffee:
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A strong increase in coffee prices in response to changes in the BRL as well as rumours regarding possible freezes
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The hurricane in Brazil has halted the harvest there and it may also some losses
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Coffee consumption reached the highest level on record but it has failed to translate into higher prices
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Farmers are supposed to get only 10% of the final coffee selling prices, thus they do not benefit from an increase in global demand for coffee
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Coffee processors like Nestle or Starbucks benefit from higher margins
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ICO, the International Coffee Organization, cut its coffee surplus forecast by 7.5% to 3.4 million bags, production forecasts were reduced, consumption forecasts were slightly trimmed
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A slight rise of speculative long positions and a fall in shorts
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Coffee inventories have fallen in US ports, the same scenario took place in 2013 and led to a huge price rally
Farmers are supposed to get only 10% of the final coffee selling prices. This could encourage them to leave the business. In the medium to long-term outlook this is the positive information for prices. Source: FT
A slight increase in longs and a moderate fall in shorts. Source: Bloomberg
After many months of a consolidation in coffee inventories in US ports we have seen a more notable decline of late. This could resemble the situation taking place at the turn of 2013 and 2014. Source: Bloomberg
Gold:
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A huge price rally in reaction to trade war fears
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New duties on Mexico encourage US investors to purchase US bonds but also gold
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TNOTE, US500 as well as JPY keep rebounding
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A clear rebound in ETFs holdings
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Gold prices remain in the overbought area relatively to RSI
A clear increase in ETFs holdings has taken place of late. Source: Bloomberg
Gold prices begin testing its latest highs. Source: xStation5
Oil:
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Oil prices have declined recently over concerns regarding the global economic slowdown
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The latest two consolidation phases resulted in further drops
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A possible rebound could be on the cards, it could reach the 50% retracement
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The pivotal support might be found nearby the 61.8% retracement of the latest downward move
Oil prices try to rebound in the face of improved market sentiment. Source: xStation5
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