12.08.10 Filed Wednesday 6:20 pm
ALL CHARTS THIS WEEK ARE Hourly Bars
Last Last Week 12.01
Jan Crude 88.51 86.75
Jan Heat 246.60 240.79
Jan Gas (Blended) 231.00 230.40
Crude oil was marginally lower on Wednesday in the wake of a
report
from the Department of Energy which reflected unexpected
increases
both in gasoline and distillate oil. Even though there was a
drawdown in
crude stocks, crude oil immediately headed lower in sympathy
with the
products fell in by over 1% of the report showed that gasoline
stocks
increased by 3.8 million barrels to 214 million barrels for the
latest
reporting week. Market watchers were looking for a decline in
supplies
of 300,000 barrels. Distillate fuels which include heating oil,
rose by 2.1
5 million barrels. Analysts said that the increase in products
show that
there is no supply problems for the current time. Supplies in
distillate
fuel were expected to have declined by 900,000 barrels. Crude
inventories fell by 3.8 million barrels to 355 million barrels.
The trade
was looking for a decline of 1.4 million barrels. Another
negative for the
market were signs that China, the world’s best customer for
energy
products, may raise short-term interest rates. China is seeking
to
combat inflationary pressures. OPEC will be meeting on December
11
in Ecuador. They are anticipated to leave current production
levels
unchanged. Crude oil was in position to switch its short-term
trend on
Wednesday but selling pressure as dried up and the market firmed
into
the close. This leaves the bias still positive. Money flow in
heating oil
remains positive as well.
Support Resistance
Jan Crude 86.55 91.80
Jan Heat 241.00 248.00
Jan Gas 225.00 235.00
***********************
METALS
Last Last Week
February Gold 1382.40 1388.80
March Silver 28.40 28.50
Jan Platinum 1685.70 1686.10
Gold fell the most in three weeks as the market braced itself
for the
possibility that China would Ray short-term rates to combat
inflationary pressures. Silver fell in price by more than 5%
after
reaching a 30 year high. The dollar was stronger in short-term
rates
back up, and gold market negative. Gold is sensitive to many
variables
but one that may predominate from time to time is the cost of
money.
Gold is a non-interest-rate bearing asset so when interest-rate
bearing
assets show better yields money has a tendency to leave the
metals. Up
to today gold had gained 29% for the year. Record levels and
silver
coin sales and and investment in exchange traded funds backed by
metals has created a frothy condition but gold and silver could
reverse
intermediate trend with a lower close on Thursday.
Support Resistance
February Gold 1375.00 1405.00
March Silver 27.00 29.50
Jan Plat 1660.00 1705.00
*********************************
SOFTS
Last Last Week
March Coffee 204.65 202.40
March Sugar 28.98 28.60
Coffee remained strong. Coffee output next year from Vietnam is
the
biggest grower in the world for robusta beans to decline by as
much as
20% from the previous harvests of 1.1 million metric tons. The
international coffee organization also one on to say that coffee
producing countries are expected to earn record earnings of
$16.5
billion from exports in the calendar year 2010 because of rising
prices.
As usual the case with coffee is that there is enough of it but
they may
not be enough good coffee available to satisfy a fairly
inelastic demand.
Sugar prices held up as well as the Brazilian sugar cane harvest
may be
delayed by heavy rains next week. Any sort of pink in the
pipeline is the
effect of firming prices. Brazil is the world's largest sugar
producer
accounting for 54% of global exports of sweeteners.
Support Resistance
March Coffee 200.00 210.00
March Sugar 27.00 30.00
*****************************************
Last Last Week
January Soybeans 12.96 12.83
March Corn 5.744 5.662
March Wheat 7.84 7.40
Soybeans and lifted him price off of a one week low on signs
that
demand is increasing for US based product. The US department of
agriculture said that shipments of soybeans were up 13% from a
year
ago. Overseas demand is at record levels. As recently as
November 12
soybeans touch levels not seen since August 2008. The dollar
value of
the US soybean crop is second only to the US corn crop
Wheat futures lost some value for a second day as there was
speculation
that the worst of the flooding to Australia's crop may be over
and the
demand may slow down as prices reached a four-month high wheat
has
been on a tear lately up 14% in two weeks as rains in Australia
called
the wettest September November. On record. Crop damage is not
probably priced into the market and for the price rallies should
and
demand. Floods in New South Wales for the worst and 20 years.
New
South Wales is the largest producing state for a wheat in
Australia.
. Support Resistance
January Soybeans 12.50 13.11
March Corn 5.45 5.83
March Wheat 7.60 8.10
