Bloodless Christmas Coup Leaves Cocoa Little Changed, Nat Gas Keeps Cool
A coup, noteworthy for its lack of violence in the world’s largest producing nation, the Ivory Coast, generated an early spike in the price of cocoa [CCH0>CCH0], sending the March contract up 66 to a one-month high on the opening of New York trading. However, high supplies during a period of low American and European demand pressured the commodity, leaving the March contract with a gain of just 7 at 856.
Elsewhere in softs and fibers trading, two commodities from the Implosion-5 List suffered heavy declines: March cotton [CTH0>CTH0] closed at a contract low, down .88 at 48.86, and January orange juice [OJF0>OJF0] sank 1.30 to a six-week low of 89.45.
In thin, uninspired trading, traders were able to drive up an otherwise bearish T-bond [USH0>USH0], sparking a rally that took March up from contract lows to end 10/32 higher at 91 8/32.
Stock index futures ended the day lower with the NASDAQ 100 futures [NDH0>NDH0] turning around from a 75-point loss late in the session to end just 4.00 lower at 3640.00.
Natural gas [NGG0>NGG0] continued falling as forecasts for a warm Mid West mean demand for the energy source as a heating fuel is low amid ample stockpiles. February closed .096 lower at 2.300 and the contract also registered on the Implosion-5 List. Although heating oil [HOG0>HOG0] turned in a strong gain (up .0115 to .6887), warm weather could also have a negative impact on the commodity in coming days.
February crude [CLG0>CLG0] ended .46 higher at 26.33 and unleaded gas [HUG0>HUG0] added .0140 to .7048.
Warm weather in Brazil also impacted the bean complex. January soybeans [SF0>SF0] fell 8 1/2 to 458 1/2. Soymeal [SMF0>SMF0], which fell 1.8 to 145.6, signaled that it could make a big move by registering on the 6/100 Low Volatility List. Soybean oil [BOF0>BOF0] gave directional indication by registering on the Pullback Off Lows List and fell .28 to 15.81.