Oil price falls as natural gas price rises, soybean price halts decline
WTI on track for third straight day of losses
Front month WTI futures are about to hit their 72.46 June low as easing supply worries amid hopes of a Middle East ceasefire and a lacklustre economy in the world’s top importer China weigh on prices.
Below the June low at 72.46 lies the early August trough at 71.28.
Minor resistance above Friday’s low at 74.64 can be spotted between the mid-to-late May lows at 76.11-to-76.43.
US natural gas
On Monday US natural gas futures surged around 5% to over $2.20/MMBtu, approaching a one-month high amid tightening supply and demand amid forecasts of intense heat across much of the western, central, and southern US this week, which is expected to drive up cooling demand and boost natural gas use.
Nonetheless the 200-day simple moving average (SMA) at $2.338 continues to act as resistance, together with last week’s high at $2.350. If overcome, however, the 55-day SMA at $2.440 might be reached.
Only a currently unexpected fall through Monday’s $2.197 low would have medium-term bearish implications.
Soybean prices stabilize
Soybean front month futures prices, which have been in a clearly defined downtrend channel since late May, have been trading sideways for the past week or so and are trying to stabilize above their current 963 August low.
If a rise above Thursday’s high at 985 were to be seen on a daily chart closing basis, the upper downtrend channel resistance line at 1,019 may be reached.
Failure at 963 would engage the December 2019 high at 958, though.