Brent crude oil price stabilises further while silver, US wheat price rallies stall

Brent crude oil recovers further from multi-year low

Brent crude oil futures’ prices are still bouncing off their 68.53 low, a level last seen in November 2021, as the latest CFTC Commitment of Traders (COT) report shows that traders are the least bullish oil in over a decade (see here).

The 5 and 21 August lows at 74.97-to-75.24 represent the next upside targets but are likely to thwart the current bounce, at least temporarily. Having said that, immediate upside pressure will be maintained while Monday’s low at 71.18 underpins, together with the 9 September low at 70.51.

Below last week’s 68.53 low lie the mid-May, August and November 2021 lows at 65.74-to-64.52.

Spot silver price hits two-month high

The spot silver price’s over 11% rally from its early September low has so far taken it to the $31.00 per troy ounce mark, above which beckons the July peak at $31.75 which remains in sight. En route lies the 10 June high at $31.55 and further up the May peak at $32.51.

Potential slips are expected to find support around the $30.19 late August high and the $30.00 region.

US wheat prices falter around technical resistance

US wheat futures prices ended their fifth straight day of gains on Friday at 602.00, a three-month high, before swiftly coming off on Monday by slipping back below the 200-day simple moving average (SMA) at 592.00. The area around it thus once more acted as resistance, just as it did in early July.

Were a rise above the 602.00 high to be witnessed, the 11 June low at 624.00 would be next in line.

Failure at Monday’s 579.00 low would put last week's 564 low back on the cards. It was made within the mid-July to mid-August highs at 565.00-to-564.00. Below this zone the 55-day SMA can be spotted at 559.00.