Weekly Market Recap – September 3, 2021

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Weekly Market Recap – September 3, 2021

After pummeling Louisiana and leaving a million customers without electric power, the remnants of Hurricane Ida moved into the northeast causing historic rainfall and flooding, along with at least 50 deaths. Because Ida’s aftermath has severely impacted the energy infrastructure, with 80% of Gulf oil production offline, the Department of Energy is releasing 1.5 million barrels of oil from the Strategic Petroleum Reserve in order to mitigate fuel shortages. The storm’s cost to insurers is estimated to be $18 billion. According to the American Academy of Pediatrics, 4.8 million children have tested positive for COVID-19 and now account for 22.4% of new cases as the new school year is beginning.

Monthly economic statistics, compared with previous levels, were as follows: Case-Shiller national home price index (year-over-year) 18.6% vs. 16.8%, the Chicago purchasing manager’s index 66.8 vs. 73.4, consumer confidence index 113.8 vs. 125.1, construction spending 0.3% vs. 0.0%, balance of trade (deficit) -$70.1 billion vs. -$73.2 billion, factory orders 0.4% vs. 1.5%, non-farm payrolls 235,000 vs. 1.05 million, unemployment rate 5.2% vs. 5.4%. Weekly initial jobless claims were 340,000 vs. last week’s 354,000.

Stocks were steady to higher for the week. The S&P 500 settled at 4,535.43 (+0.6%), and the NASDAQ Composite went out at 15,363.52 (+1.5%). The DJIA, eased 0.2%, ending at 35,369.09 on Friday. Volatility stabilized, as the CBOE VIX gained only two ticks (+0.1%), finishing at 16.41 points. The U.S Dollar Index shaved off 0.6%, with its 92.11 final value. Commodity indices continued moving higher, as the S&P GSCI closed at 531.87 (+0.5%), mostly due to rising metals and energy prices.

We will summarize the strength that persisted in metals futures with settlement prices and their respective percentage increases: gold at $1,833.70 (+0.8%), silver at $24.802 (+2.9%), platinum at $1,021.60 (+1.5%), palladium at $2,416.30 (+0.3%), copper at $4.3340 (+0.002%) and aluminum at $2,727.00 (+2.9%).

The energy sector showed gains, but less than the prior week. WTI closed at $69.29 (+0.8%), and Brent rose to $72.61 (+1.3%). Refined products also increased, with heating oil settling at $2.1594 (+2.5%) and RBOB gasoline at $2.1540 per gallon (+1.6%). Natural gas was the leader of the group we report, jumping 7.4% to $4.712 per mmBtu, as it was still driven by hurricane Ida’s fundamentals.

A week ago, we saw rallies in all nine of the agricultural contracts covered in our recap. Now, the score has shifted, with seven products dropping, and only two rising. The strength was in two of the soft commodities: coffee and cocoa. The former increased 0.4% to $1.9300 per pound, and the latter advanced 2.8% to $2,654 per ton. For the futures that retreated, the closing prices and percentage decreases from the previous Friday were: soybeans at $12.92 (-2.4%), corn at $5.24 (-5.4%), wheat at $7.26¼ (-0.9%), sugar at 19.62¢ (-2.1%), cotton at 94.02¢ (-0.9%), live cattle at 124.800 (-3.3%), and lean hogs at 89.575 (-1.3%).

 

Futures Referenced in Market Recap

Exchange Commodity Contract Month
CME Live Cattle October
CME Lean Hogs October
CBT Soybeans November
CBT Corn December
CBT Wheat December
ICE Coffee December
ICE Cocoa December
ICE Sugar October
ICE Cotton December
ICE Brent Crude November
NYMEX WTI Crude October
NYMEX ULSD (Heating Oil)  October
NYMEX RBOB (Gasoline) October
NYMEX Natural Gas October
NYMEX Platinum October
NYMEX Palladium December
COMEX Gold December
COMEX Silver December
COMEX Copper December
LME Aluminum 3 Mo. Forward

 

Current Standings​

2021 World Cup Championship of Futures Trading®
RANK NAME NET RETURN LOCATION
1 Kevin S McCormick 218.3% United States
2 Nikolai Dmitriev 166.2% Russia
3 Jürg Diemand 166.1% Switzerland
4 Graeme Adams 94.2% New Zealand
5 Kevin Davey 86.9% United States

January 1, 2021 – September 17, 2021


2021 World Cup Championship of Forex Trading®​
RANK NAME NET RETURN LOCATION
1 Raul Glavan 256.2% Germany
2 Patrick Nill 253.8% Germany
3 Cristian Franchi 190.1% Italy
4 Sergey Shirko 181.1% Latvia
5 Robert Miner 113.2% United States

January 1, 2021 – September 17, 2021


2020-2021 Global Cup Trading Championship​
RANK NAME NET RETURN LOCATION DIVISION
1 Jan Smolen 247.6% Slovakia Futures
2 Stefan Seibert 222.7% Germany Futures
3 Marek Chrastina 182.4% Slovakia Futures
4 Patrick Nill 125.7% Germany Futures
5 Maxim Schulz 78.8% Germany Futures

June 1, 2020 – May 28, 2021 – Final Pending Audit

Trading futures and forex involves significant risk of loss and is not suitable for everyone. Past performance is not necessarily indicative of future results. World Cup Championship (WCC ) accounts do not necessarily represent all the trading accounts controlled by a given competitor. WCC competitors may control accounts that produce results substantially different than the results achieved in their WCC accounts. WCC entrants may trade more than one account in the competition. CME Group is the trademark of CME Group, Inc. The Globe logo is a trademark of Chicago Mercantile Exchange, Inc.

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