Sluggish Cartel Hypes Crude
The belief that any
production output increase by the Organization of Petroleum Exporting Countries
(OPEC) will be too little, too late, jacked the price of crude oil to its
highest price since March.
The market has been expecting OPEC to raise output once the 20-day moving average of OPEC crude rose above
$28 but comments from the Saudi oil minister that the current crises was not due
to a shortage of oil, but rather to a run in prices, spooked market watchers, exacerbating the sentiment that the cartel will not speed crude to a world market thirsty for oil.
Thoughts from last week that higher output would commence immediately once oil hit the $28 band were shattered following comments made by OPEC
Secretary-General Rilwanu Lukman on Sunday. A strike in Norway, a major non-OPEC
producer, also furthered worries about spot shortages.
The energies have been tracing bullish
pennant patterns (see chart) and traders combining TradingMarkets.com Futures Indicators
signals will have noticed that heating oil indicated it could make a
larger-than-expected move by registering on the
6/100 Low Volatility
List, while unleaded gasoline suggested upside potential by posting on the Momentum-5
List. July crude
(
CLN0 |
Quote |
Chart |
News |
PowerRating) closed 1.52 higher at 31.72, unleaded gas
(
HUN0 |
Quote |
Chart |
News |
PowerRating)
gained .0248 to 1.0430 and
heating oil
(
HON0 |
Quote |
Chart |
News |
PowerRating) added .0377 to .7800.
September T-bonds
(
USU0 |
Quote |
Chart |
News |
PowerRating) continued making good on their Momentum-5 reading
as well closing quietly higher, up 6/32 at 97 16/32. 10-year notes
(
TYU0 |
Quote |
Chart |
News |
PowerRating)
did better, gaining 8/32 to 98 0/32.
Stock index futures head-faked on the open but continued
steadily lower throughout the session and accelerated their downhill slide in
the last half-hour to finish in negative territory. Sept Dow futures
(
DJU0 |
Quote |
Chart |
News |
PowerRating)
held up the best, edging 62.0 lower at 10,721.0. S&P futures
(
SPU0 |
Quote |
Chart |
News |
PowerRating)
closed 15.50 lower at 1469.00 and NASDAQ 100 futures
(
NDU0 |
Quote |
Chart |
News |
PowerRating) lost 121.84 to
3638.42.
In metals trading, copper took its direction from London Metals Exchange nickel,
falling .35 to 79.45 and made good on its
Implosion-5 List
reading.
Widespread rains across the Midwest–with forecasts for
more grains ahead–drenched any residual drought fears and sent grain prices sharply
lower. The price tumble started in Project A trading over the weekend, resulting in gap-down openings in
beans and corn in Monday pit trading. Corn fell to a contract low and soybeans
hit their lowest level since mid-February. Both contracts have been tipping their hand by
registering on the
Implosion-5 List .
The potentially lower prices were commented on in the Pre-opening
Futures Outlook and also continued moving lower than opening levels spelled
out in Pre-Opening Calls.
July corn
(
CN0 |
Quote |
Chart |
News |
PowerRating) slipped 5%, nearly its daily limit or 11 to 208 1/4.
Soybeans
(
SN0 |
Quote |
Chart |
News |
PowerRating) slid 10 1/4 to 510 1/2,
soymeal
(
SMN0 |
Quote |
Chart |
News |
PowerRating) dipped 4.4 to 175.3 but soybean oil
(
BON0 |
Quote |
Chart |
News |
PowerRating) held on
ending down just .06 at 16.30.
In the third day of a pullback from a 20-day high, July pork bellies
(
PBN0 |
Quote |
Chart |
News |
PowerRating)
fell, ending 1.350 lower at 87.700. August lean hogs
(
LHQ0 |
Quote |
Chart |
News |
PowerRating) also slipped
.975 to 68.925.
Sugar
(
SBN0 |
Quote |
Chart |
News |
PowerRating) traders took profits following Friday’s
strong rally. The July contract traced an inside day near its highs and remains
one of the strongest trending markets with an ADX
Reading of 67 and top ranking on the Momentum-5
List. Sugar closed down .08 at 8.49.
July cotton
(
CTN0 |
Quote |
Chart |
News |
PowerRating), also from the Implosion-5 List
continued its move down, hitting a one-month low of 56.65, down 1.69.