Oil And Gas Hit Record Highs, Are You Long?
The energy complex hit record highs across the
board today. Led by September Harbor Unleaded Gas +2.82%, September
Heating Oil +3.25%, October Natural Gas +2.47% and Crude Oil
+1.04%. Unleaded Gas prices are up 79% this year, while Heating Oil is up 54%
and Crude Oil is up 51%. All 4 contracts were highlighted last night in the
TradingMarkets.com Momentum 5 List.
September Copper +0.76% rallied after
COMEX announced US inventories fell to a 9-year low. Earlier in the day the LME
said global stockpiles had risen showing that the shortage is specific to the
US. The rest of the metals complex closed higher, helped by the declining US
dollar. December Gold +2.01% was the standout performer, closing nearly
$9 higher.
The US Dollar hit a 10-week low vs. the Euro and its lowest level vs. the
Japanese Yen since June after July retail sales numbers were released. Forex
traders are focusing on tomorrow’s trade report which will reveal whether the
trade deficit has grown.
The September US 10yr T-Note +0.40% rallied strongly after a well
received auction. Foreign buyers bought the most 10yr-notes since June 2003,
purchasing 46.9% of the $13 billion offering.
The US Department of Agriculture announced that with 3-weeks to go in the 2004/5
season, corn exports are down 5% lower than last year, while soybean exports are
up 23%. Among the grains December Corn +0.74% and December Wheat
+1.48% closed higher but November Soybeans -0.23% closed lower.
December Cocoa -2.86% fell to a new
contract low on concerns about the October election in Ivory Coast and a larger
than expected crop.
Economic News
Jobless Claims: New Claims – Actual 308 K,
Consensus 315 K
Retail Sales: M/M Change – Actual 1.8%, Consensus 2.4%
Retail Sales (ex. Autos): M/M Change – Actual 0.3%, Consensus 0.6%
Business Inventories: M/M Change – Actual 0.0%, Consensus 0.1%
Ashton Dorkins