Cannon Trading — Market Close Commodities Wrap
Commodities ended the session mixed as markets digested today’s EIA report and the FOMC Minutes, both of which helped reset positioning after a turbulent 48 hours.
Energy
Energy stabilized, with WTI holding modest gains while Brent remained heavy following yesterday’s major geopolitical swing: reports of a two‑week US–Iran ceasefire framework aimed at reopening the Strait of Hormuz. That headline triggered one of the largest intraday reversals in years, and today’s trade reflected the market still recalibrating risk premiums.
Products firmed slightly after yesterday’s washout, though traders remain cautious given the fragile nature of the ceasefire talks and continued regional strikes reported overnight. Metals eased, with gold extending its orderly pullback from record highs as the Fed minutes reinforced a data‑dependent stance and nudged real yields higher.
Copper
Copper held steady on firm demand signals. Agriculture was mixed — soymeal led the complex, grains stayed range‑bound, and softs continued their weather‑driven strength. Cross‑asset flows leaned defensive, with a firmer dollar and ongoing fund deleveraging shaping late‑day price action.
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Looking ahead to tomorrow, attention turns to Jobless Claims, USDA Export Sales, and how markets digest the Fed’s tone from today’s minutes. Energy traders will watch whether crude spreads stabilize overnight and whether any new developments emerge around the ceasefire negotiations, which remain the single biggest swing factor for crude volatility.
Metals
Metals will trade off yields and dollar direction, while ag markets will focus on export demand and updated weather models. Volatility remains elevated across the board, and tomorrow’s session will hinge on whether macro data cools the dollar or adds another layer of pressure to commodities and risk assets.
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