03 June 2016 at 9:15 GMT
- Soybean meal futures rally sharply
- Sugar, lean hogs prices also spike
- Broad commodity index still low overall
By Walter Kurtz*
Today we have several updates on commodities.
1. Soybean meal futures continue to rocket higher. While China's rising demand for feed is one of the factors, at this point hot money is all over this market.
2. The situation is similar with US sugar and soy futures, where the rally has accelerated.
3. US lean hogs futures jump as pork prices in China reach record highs this week. This market is contributing to the soy meal rally.
4. Zinc rally resumes on lower production. See an overview from the Financial Times.
5. Coal prices in Asia are waking up.
6. While some of these rallies look impressive, the CRB broad commodity index recovery will take a while.
7. Precious metals are under pressure ahead of the Fed's rate hike. Here is platinum spot.
8. The US gasoline market is well supplied, as inventories remain way above the typical levels for this time of the year.
9. We continue to see a disconnect between crude oil and the trade-weighted US dollar index.
— Edited by Michael McKenna
* Walter Kurtz is an alias
**This is an abridged version of the Daily Shot. To subscribe to the full version, link to the Daily Shot and select the appropriate command. E-mail addresses are never shared with anyone