Weekly Futures Report
03.17.10 Filed Wednesday 6:15 pm
ALL CHARTS THIS WEEK ARE Daily Bars
Last Last Week (2.17)
May Crude 83.21 82.43
May Heat 215.13 212.77
May XRB (Blended) 230.93 228.68
OPEC, at its current meeting, decided once again to leave
levels unchanged. They believe that there are enough signs of
resurgence to sop up the current glut of crude. This is the
consecutive meeting without a change in quotas. Itís believed
OPEC is currently overproducing stated levels by a supertanker a
OPEC currently supplies 40% of the worldís daily oil supply.
believed that Nigeria is also overproducing while Iraq is exempt
quotas. Oil now seems content to trade within a range of $70 to
the lower end of the range would result in production cuts and
end of this range would result in production increases. The
spreads continue to favor gasoline against heating oil. Money
continues to be positive for crude. Another positive for this
that the Federal Reserve left short term interest rates
their latest FOMC meeting which was a dollar negative and a
commodity market positive.
For the latest week, crude imports dropped while supplies of
and distillates fell less than forecast. Crude inventories were
higher by 1
million barrels. Gas stocks dropped by 1.7 million barrels while
distillates were lower by 1.49 million barrels.
Another positive for the oil market is that it is now emblematic
contracting or expanding economy. Previously, higher oil prices
viewed as a negative for stocks as profit margins were squeezed.
higher stocks equates to higher oil prices as a sign of economic
Thatís the definition of a paradigm shift.
May Crude 78.50 84.00
May Heat 204.00 217.80
May Gas 220.00 232.10
Last Last Week
June Gold 1125.30 1109.40
May Silver 17.523 17.10
April Platinum 1635.60 1594.70
Gold rallied ahead of the Fedís rate decision but declined the
Part of the problem on Wednesday was goldís linkage with the EC.
EC declined from a five week high on the idea that the problems
Greek indebtedness have not been resolved. German Chancellor
Merkelís political party has reversed its recent position and
that Greece should approach the International Monetary Fund for
bailout, in necessary. This reflected badly on the EC and thus
selling. Currently, gold is trading as the anti currency and
failed to materialize on Wednesday. Money flow in
negative. Money flow in silver is positive.
June Gold 1100.00 1142.00
May Silver 17.00 17.69
April Plat 1610.00 1644.00
Last Last Week
May Coffee 133.70 132.35
May Sugar 18.37 19.69
Sugar traded to a seven month low before short covering stepped
support prices. In the cash market, Egypt canceled a bye of
metric tons. Money flow in sugar continues to be negative.
levels in India are anticipated to be better than expected.
production may exceed 16.8 million pounds, better than a
estimate of 16,000,000 tons. Also, Thailand's production is
be better than previously expected. Thailand is the second
exporter of sugar in the world Buyers in the cash market for
withholding bids in the anticipation of lower prices.
Coffee prices firmed up as inventories were at their lowest
nearly 7 years. Money flow in coffee is positive.
May Coffee 129.50 135.00
May Sugar 17.19 20.00
Last Last Week
May Soybeans 9.59 9.58
May Corn 3.740 3.654
May Wheat 4.960 4.815
Corn was better again on Wednesday as there is mounting concern
flooding in the Midwest. Maybe as much as one third of the crop
record flooding. Not only has there been excessive rainfall but
ground is saturated from the melting snows of winter. What
delayed last years planting as well and corn saw its highest
price in the
year in June.
Wheat rallied on Wednesday as the world's fifth largest
Ukraine, said that losses to its crops were greater than
expected due to
cold weather damage. The Ukraine's output for wheat may come in
20.9 million tons down from an earlier estimate of 25.9 million
Money flow in soybeans remains positive.
May Soybeans 9.30 9.705
May Corn 3.65 3.87
May Wheat 4.70 4.97
HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT
LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO
REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS
LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN
FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN
HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS
SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM.
ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS
THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF
HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE
FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN
COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL
TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO
ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING
LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT
ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS
RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF
ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY
ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL
PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT
ACTUAL TRADING RESULTS.