11.24.10 Filed Wednesday 3:40 pm
ALL CHARTS THIS WEEK ARE Hourly Bars
Last Last Week 11.17
Jan Crude 84.24 81.04
Jan Heat 233.06 225.19
Jan Gas (Blended) 222.24 215.79
Crude oil rallied intraday to its best percentage gain in over
five weeks
as US jobs data suggested creation giving the idea that the US
economy
may be more robust and because of that more capable of
increasing its
demand for oil and its products. For the latest reporting week,
claims
for unemployment benefits fell by 34,000 to 407,000. Another
sign or a
regenerating economy was an increase in consumer spending. In
recent
trading action, oil had fallen over 6% from the highs made
November
11
,
its best level in two years. The drop was precipitated by China
seeking to dampen inflationary pressures by asking banks to
increase
reserves. Consumer spending rose for a fifth consecutive month.
As for
the supply/demand picture, crude oil stocks were higher by 1.03
million
barrels to 358 million barrels. The trade was looking for a
decline of 2
million barrels. Another positive for the market was a pipeline
break in
Nigeria forcing Royal Dutch Shell to declare a force majeure.
This could
affect Nigerian loadings for the months of December and January.
Nevertheless, money flow for crude oil remains negative.
Support Resistance
Jan Crude 82.05 85.33
Jan Heat 225.00 235.00
Jan Gas 215.00 225.00
***********************
METALS
Last Last Week
February Gold 1373.90 1339.00
March Silver 27.64 25.58
Jan Platinum 1661.5 1640.90
Gold was under light selling pressure on Wednesday as the dollar
regained strength against most of its counterparts and tensions
in Korea
eased. On Tuesday, gold jumped more than 1.5% as it became known
that North Korea had provoked South Korea by firing artillery at
a
South Korean island. Also, news that the Irish government would
dissolve in the wake of a bank bailout package. This lack of
confidence
in paper money was a gold market positive. Workers strikes in
Portugal
on a scale not seen in 22 years was another positive. Continuing
worries
over Spain was another impetus to buy gold. Money flow in gold
is
negative while it remains positive for silver.
Support Resistance
February Gold 1335.0 1390.0
March Silver 27.00 28.20
Jan Plat 1630.0 1690.00
*********************************
SOFTS
Last Last Week
March Coffee 2.0745 2.0285
March Sugar 28.06 26.47
Coffee was supported as news circulated that Columbia’s harvest
may
be 5/3% below previous expectations. Columbia is the world’s
second
largest produce of Arabica beans. The reason fro the shortfall
has been
attributed to excess rainfall. The wet weather has also promoted
the
spread of a fungus that kills coffee plants.
Sugar continued to appreciate. Supply concerns form India, the
world’s
second largest producer and Australia, the world’s third largest
exporter supported higher prices.
Support Resistance
March Coffee 2.025 2.10
March Sugar 27.00 29.00
*****************************************
Last Last Week
January Soybeans 12.55 12.05
March Corn 5.536 5.392
March Wheat 6.852 6.714
Soybeans rose in price to a one week high on increased sales to
China.
Sales to China are up 19% from year ago levels. Grain and oil
seed
markets will be closed for Thanksgiving on Thursday. Last wee,
soybeans fell precipitously as China asked banks to stem
inflationary
pressures. China will also raise margin rates for their
commodity
exchanges to dampen speculative demand. Many observers believe
these
actions by China are a covert admission that they have a food
shortage
problem.
Wheat rallied on Wednesday as signs of a rebound in global
economies
were thought to have improved demand for grains. US consumer
confidence came in above expectations while German business
confidence was also better. Also, world weather models suggest
less than
ideal growing conditions in the world’s key growing areas.
Support Resistance
January Soybeans 12.00 13.25
March Corn 5.25 5.41
March Wheat 6.70 6.95
