Chinese manufacturing may be stronger than initially expected
12.01.10 Filed Wednesday 6:20 pm
ALL CHARTS THIS WEEK ARE Hourly Bars
Last Last Week 11.24
Jan Crude 86.75 84.24
Jan Heat 240.79 233.06
Jan Gas (Blended) 230.40 222.24
Crude oil and its products surged on Wednesday on a greater than
expected private forecast in growth. There were also signs that
manufacturing may be stronger than initially thought. Also,
some signs from the European Central Bank that they would take
necessary measures to contain the Euro zoneís debt crisis.
manufacturing grew at its best levels in seven months. Also,
Sachs raised a price target for crude in the year 2012 to $110
According to ADP, US payrolls rose by 93,000 jobs in November.
the Institute for Supply Management stated that manufacturing
the US expanded for the 16consecutive month. Chinaís
Managersí Index came in higher than expected and this was also
market positive. Previously, oil was lower by nearly 2% in price
was the fear that the Euro zone debt crisis will soon spread to
Portugal and Italy.
As for the supply/demand picture, crude oil stocks for the
reporting week rose by just over 1 million barrels to 359
basically in line with industry forecasts. Traders have recently
the opinion that the market is currently more focused on macro
economic news rather than supply and demand ratios.
money flow in crude oil remains negative.
Jan Crude 82.20 88.00
Jan Heat 225.00 250.00
Jan Gas 215.00 235.00
Last Last Week
February Gold 1388.80 1373.90
March Silver 28.50 27.64
Jan Platinum 1686.10 16461.50
Gold once again was challenging the $1400 dollar an ounce level
Wednesday, its best level in almost two weeks as lingering
about the European debt crisis encouraged continuing demand for
metal as an asset class for diversification. The dollar traded
its best level in almost two months as the belief circulated
policy makers may have a stronger desire to contain and curtail
current debt crisis. After the bank bailout in Ireland, itís
the ECB governing council will signal a delay in enacting its
emergency liquidity measures. There is the universal expectation
the ECB will leave its interest rate unchanged at 1%.
February Gold 1355.0 1400.00
March Silver 27.00 29.00
Jan Plat 1600.0 1800.00
Last Last Week
March Coffee 2.024 2.0745
March Sugar 28.60 28.06
Commodities, including coffee, climbed the charts on Wednesday
better than expected employment prospects being generated by the
economy. The ADP private forecast suggested that over 90
jobs were added to the economy. By itself, itís not a burn down
house number but it was 20 thousand above estimate and may be
suggestive of a trend. Of course with more employed,
income enjoys a de facto increase and prices generally tend to
Again, this market is no different than many during this time
supply and demand characteristics specific to individual markets
being obscured by big picture issues.
Sugar rebounded from one of its worst declines of the year in
that global supplies will shrink next year. The world sugar
be as much as 2.8 million metric tons primarily due to adverse
in Brazil. Sugar sold off previously as did many other commodity
markets due to unexpected dollar strength during the month of
November. Heavy rainfall in India reduced sugar production.
sugar mills are planning to turn more sugar cane into sweetener
dryness has affected crops.
March Coffee 1.983 2.07
March Sugar 25.50 29.00
Last Last Week
January Soybeans 12.83 12.55
March Corn 5.662 5.536
March Wheat 7.40 6.852
Wheat prices surged the most in seven weeks as excessive rain
projected to have reduce grain quality and delay the harvest in
Australia. The last three months in Australia were the wettest
record. This will result in deterioration in the crop making it
only for feed.
Corn had its biggest one day rise in almost six weeks. There is
that China will attempt to increase its imports to dampen
pressures. The improving economies of China and India are
support grain prices moving forward. Both countries are running
inflation rates well above those seen in the United States.
January Soybeans 12.20 13.25
March Corn 5.40 5.80
March Wheat 6.90 8.00