Oils Boil, Softs Evaporate

• August 23, 2000
• Marc Dupee

Heating
oil rallied to a new contract record while coffee and orange juice plunged to
contract record lows. 

The American Petroleum Institute released its weekly
report after the energy markets closed Tuesday which painted a picture depicting
a cold winter landscape. The report showed heating oil supplies were down 39% from
levels one year ago at a time when supplies traditionally are building for the
winter season. Heating oil, the leading contract on the Momentum-5
List, was up a steep 5.8%, or .0526 to .9561, on fears that there will be
insufficient supply to heat homes if the Northeast gets a harsh winter. 

October crude oil
(
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contract record close, up .80 at 32.02. Natural gas
(
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gains to lodge an inside day at highs, up .085 at 4.605.

Comments from a senior ruling party member that interest
rates and the yen should both rise propped up the Japanese yen
(
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in months, adding .0108 to .9385 in Wednesday’s session. 

Interest rate futures shot back to near, or record highs
as the Treasury bought back securities in its move to retire debt. A
Pullback From Highs 
play, September T-bonds
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closed up 12/32 to 100 3/32.

Tanking for its fourth straight day, gold
(
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gapped lower on a strong US dollar, then filled the gap but was unable to hang
on to gains, leaving the December contract at an 11-month low. From the Implosion-5 List,
September silver
(
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gold to end at a contract low, down 5.0 at 479.8. 

 

Coffee
(
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despite the convening of a meeting among major producing countries to hold back
coffee stocks. Coffee is an Implosion-5 List
member and Multiple Days Low
Volatility contract. 

November orange
juice
(
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PowerRating) fell 1.80 to 73.95, its lowest contract reading ever, after
hurricane Debby was downgraded to a tropical storm.  

Cocoa, (CCU0) from the
Implosion-5 List,
set a new contract low. The contract also set up a Turtle Soup Plus One Buy situation at the previous 20-day
low struck on August 9 for Thursday’s session. The September contract closed 11 lower at 740.