Commodities Tank to Start Week Amid Bearish Sentiment
The commodity complex started this week on a bearish note, leaving some investors feeling like Garfield the Cat, who famously hates Mondays. Gold and silver prices took a hit, with gold down $131 (3.0%) in the December contract and silver falling as much as $3.49 (5.4%). The metals sector led the decline according to Barchart's Futures Market Heat Map.
The US 30-Year Treasury Yield jumped to its highest level in over 22 years, causing US Treasury futures to drop across the board. Meanwhile, the US dollar index ($DXY) strengthened overnight. Despite this, US stock index futures were under pressure, and European markets traded higher to start the week.
Energies were a notable exception, with spot-month diesel up 18.0 cents (3.9%) and WTI crude oil increasing by $3.35 (3.7%). Corn prices also fell pre-dawn Monday but not as sharply as gold or crude oil, with the December contract losing as much as 6.25 cents overnight.
Soybeans and wheat were in the red to start the week, with soybean meal leading the decline. The December soybean meal contract was down $8.30 (2.2%), and funds held record large long and net-long futures positions according to the latest Commitments of Traders report.