Panic Before The Storm
Natural gas rallied to new records as tropical storm Debbie looks poised to
develop into a full blown hurricane and track to the Gulf of Mexico. Much of the
natural gas used in the US comes from the Gulf and production stops when workers
are pulled off gas and oil rigs during storms.
In its biggest day in months,
natural gas
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PowerRating) exploded 6% and made good on its Pullback From Highs
alert to end .299 higher at 4.735. A deadly explosion at a New Mexico pipeline
cut supplies to some some western states, exacerbating perceptions of tight
supplies in natural gas.
Crude oil, unleaded gasoline and heating oil, the three
contracts leading the Momentum-5
List, also rallied on possible supply disruptions which could result from
the storm. The trade is also pricing in fear that OPEC will not bring enough oil
to market to avert supply shortfalls.
Heating oil
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supply and inadequate to meet winter heating demand and shot up the most,
gaining .0249 to .9240. September crude oil
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unleaded gasoline
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Pork bellies
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Pullback From Lows
setup on weak cash prices and the prospect that low corn prices will translate
into higher supplies of pork. Bellies for January delivery fell 1.925 to 65.400.
Coffee
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PowerRating) hit a new low close Monday as
traders sold despite agronomists’ estimates that the 2000-2001 coffee crop could
drop due to last month’s freeze. September closed .90 lower at 77.50.
December cotton
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PowerRating) crossed an
important pivot and raced to a new contract high, making good on a Momentum-5
List reading to end 1.26 higher at 66.61. Hot temperatures across Texas and
the South as well as poor crop forecasts in Monday’s U.S. Department of
Agriculture weekly update supported futures contracts.