Crude Rises As Supplies Slip
Crude oil futures [CLF0>CLF0] and its distillates surged more than 2% each on American Petroleum Institute data showing a steep decline in inventories. The January contract rose .63 to 26.36, unleaded gas [HUF0>HUF0] popped .0154 higher to .7130 and heating oil [HOF0>HOF0] gained .0134 to .6730.
From the Pullback Off Lows List, natural gas [NGF0>NGF0] sank 3.83%, or .099 to 2.484, correcting a short-term overbought situation that has seen the contract rise 18% in six days.
T-bonds [USZH0>USH0] fell slightly following slightly weaker (but positive) industrial production numbers. With few buyers, the March contract fell in the second half of the session to end down 13/32 at 92 20/32.
Stock index futures staged a dramatic reversal, coming back from a steep, early decline. From the Momentum-5 List,
March Dow futures [DJH0>DJH0] and NASDAQ 100 futures [NDH0>NDH0] rallied, adding 47.0 and 53.00, respectively. March S&P futures [SPH0>SPH0] registered on both the Pullback Off Highs and Multiple Days Low Volatility lists, falling 10.00, then rising more than 20.00 before settling up 3.40 at 1428.70.
The mix of a strong US economy with no trace of inflation boosted March dollar index futures [DXH0>DXH0] (up .02 to 101.95) for a second day. British pounds [BPH0>BPH0] took the biggest hit against the dollar, falling .0072 to 1.6056.
March copper [HGH0>HGH0] jumped to its highest level in three months, breaking above technical levels and triggering buy stops before closing on its high of the day, up 3.10 at 83.95. February gold [GCG0>GCGO] popped above a minor consolidation area, gaining 2.6 to close at 284.6.
Pork bellies [PBG0>PBG0] rose on the view that the holiday season will reduce the slaughter. Long-belly spread trades also worked to boost the February contract 1.550 to 78.200. Lean hogs [LHG0>LHG0] ended up .475 and cattle closed narrowly mixed.
In the softs, March sugar [SBH0>SBH0] fell .14 to 5.74, dropping as traders switched to the May contract. Coffee [KCH0>KCH0] shot up 5.85 to 128.35, rising on uncertainty over the severity of damage to the Brazilian crop (the world’s largest producer). March cocoa [CCH0>CCH0] moved up 10 to 852 and is being supported by an Ivory Coast growers cooperative threat to strike Thursday.
Finally, orange juice [OJF0>OJF0] rose 1.60 to 90.30.