Brent crude oil recovers, orange juice rallies and copper drops on stronger US dollar
Outlook on Brent crude oil, orange juice and copper as the US dollar remains bid.
Brent crude oil extends gains from previous session amid improving demand outlook
Brent crude oil continues to recover from Monday’s $74.47 low amid an improving demand outlook and declining global supplies from Canada’s Alberta region due to for weeks raging wildfires and OPEC+ production cuts which took effect this month. The oil price is approaching its two-month downtrend line at $76.64 which, together with last Friday’s and the previous week’s high at $77.42 to $77.51, is likely to thwart the current advance. If not, the 55-day moving average (SMA) at $78.90 would be targeted. Support sits at Monday’s $74.46 low, a slip through which would put the previous week’s $73.37 low on the map.
Orange juice price accelerates higher
Front month orange juice futures have accelerated to the upside on renewed supply concerns following the worst orange crop in Florida since the 1920s and harvest delays in northern Brazil. The rally off the $238.07 per 15,000 Lbs. six-week mid-May low is gunning for the early May high at $271. If bettered on a daily chart closing basis, the resumption of the medium-term uptrend would be confirmed with this year’s all-time record high at $280.38 being eyed. Slips should find support along the breached two-month resistance line, now because of inverse polarity, support line at $260.50. Further down meanders the 55-day simple moving average (SMA) at $255.50 which may also offer potential support, together with the mid-May high at $255.33.
Copper resumes its descent
The price of copper, having sideways traded for the past week or so, is resuming its descent on an appreciating US dollar which trades in seven-week highs and rising inventories. Its fall through last week’s $8,089 per ton low has the psychological $8,000 mark in sight, below which beckons the October high and November 2022 lows at $7,877 to $7,850. Only a currently unexpected bullish reversal and rise above the 200-day simple moving average (SMA) at $8,372 would question this view. Immediate resistance lies at the 12 May low at $8,142.
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