Oil price bounces back on supply worries as corn and orange juice prices slide
Outlook on WTI, corn and orange juice amid heightened Middle East tensions.
WTI bounces back on supply worries
Front month Oil - US Crude futures regained most of Monday’s sharp losses, due to Saudi Arabia’s February price cuts, as halted oil production in Libya and heightened geopolitical tensions prop up the oil price ahead of today’s US EIA data.
If Tuesday’s high at 72.96 were to be exceeded on the WTI front month futures contract, the October-to-January downtrend line at 73.50 could be tested. Further up lurks last week’s high at 74.26.
Potential slips may find support at the 71.33 late December low. While the next lower current January lows at 70.21 to 69.41 hold, further sideways trading remains on the cards.
Corn prices remain in three-year lows
Front month Corn futures continue to trade in three-year lows and have so far slid to 458, to below the 460.1 July 2019 high, with the November 2020 high at 438 representing the next downside target.
Strong resistance above the June 2019 peak at 466.7 can be spotted between the 471 to 476 July to November lows.
Orange juice futures prices drop to near five-month low
Front month Orange Juice futures have fallen for four straight days and on Tuesday hit a near five-month low at 297.99 as production rises and supply improves.
Further down lies the 287.24 August low which may offer interim support.
Resistance above the December low and 200-day simple moving average (SMA) at 310.53 to 312.10 sits at Friday’s 318.60 low.
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