Brent crude oil trades near 10-month, sugar near 12-year highs while copper stalls
Outlook on Brent crude oil, copper and sugar ahead of OPEC and US EIA monthly outlook reports.
Brent crude oil trades close to ten-month high
The price of Brent crude oil remains close to its ten-month high seen on Monday at $91.18 as investors await key monthly outlook reports by both OPEC and the US EIA later on Tuesday. A rise above the $91.18 high would push the July 2022 low at $92.43 to the fore and perhaps also the mid-September 2022 high at $95.19.
Potential slips should find support around Friday’s low at $89.09. While it underpins, further upside pressure remains in store. Further down potential support can be spotted between the 5 September and mid-August high at $87.92 to $87.83.
Copper price rise stalls
A pullback in the US dollar on Monday ahead of key US inflation data on Wednesday boosted risk sentiment and made dollar-priced commodities such as copper more attractive for international buyers. Following last week’s 3% drop in the copper price, it regained most of its losses by rising to the 55-day simple moving average at $8,422 per tonne on Monday but is being capped by it on Tuesday morning.
A rise above this week’s high at $8,431 is needed for another potential bullish leg to gain traction and for the August-to-September downtrend line at $8,516 to be back in sight. Further up lies more significant resistance between the early September high and the 200-day simple moving average (SMA) at $8,599 and $8,604. Minor support is to be found around the 25 August low at $8,323 ahead of the 8 August low at $8,278.
Sugar #11 consolidates below 12-year high
Front month sugar futures short-term consolidate below last week’s near 12-year high at 27.22 and currently trade back below their 26.81 April peak, as deficient rains lead to concerns about Indian sugar production. While the 7 September low at 26.16 underpins, the odds continue to favour an upside break.
A daily chart close above the 27.22 high would target the psychological 30.00 mark. Minor support below the 26.21 to 26.16 June peak and Thursday’s low sits at the late August 26.11 high. While the last significant reaction low – the late August trough at 25.30 - underpins, the medium-term uptrend remains intact. A reaction low is made when the low of a daily candlestick is below that of the day preceding it and the day following it.
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