Natural Gas Hits 17-Month Low

In Wednesday’s economic news, Crude Oil
Inventories fell in the most recent week

(report).

The report had little effect on Crude Oil which closed slightly higher at
$72.19. Unleaded Gas also rose but Heating Oil and Natural gas fell sharply.
Natural Gas fell to a 17-month low, according to Bloomberg.

Treasuries resumed their slide after yesterday’s rally turned out to be a
one-day wonder.

Fed Funds futures are
currently pricing in an 88% probability of 25 bps and a 12% probability of 50
bps at next week’s FOMC meeting (full
story
) — unchanged for the fourth consecutive day.

The US Dollar Index closed modestly higher but trading was light in all the
majors as FX traders chose to sit on the sidelines until after the Fed decision.

The softs were generally higher; Cocoa +2.55%, Coffee +2.46% and Cotton +1.67%
rose, Lumber -2.99% fell.

The grains were mixed; Wheat -1.65% was the biggest mover.

Gold and Silver continued to trade in narrow ranges.



Economic News

EIA — Crude Down Fall 3.33 Mln.; Gasoline Down 1.09 Mln.; Distillates Up 1.84
Mln. (report)

For more reports and analysis go to our
Economic
News
section.

Ashton Dorkins

editor@tradingmarkets.com

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