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Tuesday, January 31, 2006

Technical sell-off sends Coffee lower!

After reaching eight-month highs early yesterday, Coffee futures have given back almost 9 cents in less than two trading sessions, as speculators rush for the exits. Yesterday's lower close spooked bullish traders, who decided to book profits while they could. Read More....

FOMC Meeting Today

The FMOC meeting was the key event today. The target federal funds rate was raised .25% to 4.5%, which was exactly what markets were expecting. The commentary was notable for not including the term "measured" and for using a new phrase to describe possible future hikes, "may be needed." This was pretty much what analysts had expected. Ben Bernanke will be confirmed by the Senate tomorrow morning. Another rake hike is likely in March, though much depends on February's data.

Senior Analyst Mike Zarembski Reports in FutureSource Newsletter

Gold hasn't looked this solid in a long time. Strong demand for commodities, creeping inflation, and growing interest in safe haven investments have pushed gold to its highest level in 25 years. Gold's previous high of $850 per ounce, reached in 1980, equates to roughly $2,200 in current dollars. So, there's plenty of room for gold to rise even higher! Read More....

Natural Gas Rallies

Natural gas contracts rallied 10% today after official weather forecasts predicted a reversal to the mild temperatures that have gripped much of the nation this winter. In trading on the NYMEX, the March contract rose 88.2 cents to settle at $9.389 pre million British thermal units.

Goodbye Greenspan!

FX markets were very much range-bound Monday, in the absence of any essential data. Today, however, may be a busier day, as it is Alan Greenspan's last Fed meeting, and many will be looking forward to his closing comments after the meeting. Read More....

Gold at 25 year highs! Now What?

Gold at 25 year highs! Now What? You have to go back to 1980 to find higher prices for the yellow metal. Prices continue to rise on fears of potential political upheaval in the Middle East, concerns of rising inflation, Asian central bank buying, and speculative interest. With all these bullish factors in the market, where are prices headed? Read More....

Crude Oil Traders Focused on Today IAEA Meeting

Crude hovers around $68 a barrel as traders anxiously await the outcome of the OPEC meeting today. Expectations are production will not change, putting the focus on Thursday's International Atomic Energy Agency, (IAEA), meeting, which may have an even greater impact on production. The UN's nuclear watchdog may be forced to recommend action be taken by the UN Security Council in regards to Iran's nuclear ambition.

Monday, January 30, 2006

FX Markets Await Greenspan

FX markets were very much range-bound Monday in the absence of any essential data. Tuesday may be a busier day, as it is Alan Greenspan's last Fed meeting, and many will be looking forward to his closing comments after the meeting. His "hand-off" remarks will be analyzed for clues as to whether the Fed will be moving higher in March, as well as his overall feeling on the economy as he leaves his position. There is no Fed meeting in February. The ECB will also be meeting on Thursday.

Commodity Funds Sour On Sugar Futures

Commodity funds sour on Sugar futures: Here is something you have not seen lately, a down day in Sugar! After making 24-year highs on Friday, commodity funds decided to book some profits on their long positions. Sell-stops were triggered once the March contract broke Friday's lows, spurring further speculative selling. Read More....

Greenspan To Raise Rates One Last Time In His Final Meeting

Heading into what could be an interesting week, the Dollar is firm. Expect to hear much about Alan Greenspan's final meeting as Chairman of the U.S. Fed. Tuesday's meeting will be his last, and rates are widely expected to be raised another .25% to 4.5%. Read More....

Orange Juice Markets At A Crossroads

Orange Juice market at a crossroads: Both bulls and bears are fighting for control of the Orange Juice futures market. Bulls argue that prices are due to move higher on reduced expectations for this year's Florida crop, due to damage from hurricane Wilma and continued threats from disease. Bears will counter that prices have made their highs for the season, as chart patterns are pointing to lower prices. Read More....

Good To The Last Rally

Good to the last rally: Coffee futures are coming close to 7-month highs, as roasters and commodity funds keep on buying. Local traders that came in short the market were forced to cover their losing positions, which added to the buying pressure. Brazilian producers are still reluctant to let go of supplies, hoping for higher prices. Read More....

Friday, January 27, 2006

Wild Day in the FX Markets

Today was a relatively wild day for FX markets. After Q4 GDP was released, showing a very meagre 1.1% rise, the Dollar sold-off fast. The fear was/is that growth may be falling-off precipitously. A hour or so later, when a surprisingly robust new home sales figure was released, matters quickly revered. The Dollar remained firm throughout the rest of the day. The poor GDP number is being blamed on soft consumer spending, which is thought to be helped/remedied by the big housing number.

Next week Friday is non-farm payrolls.

Crude Oil: The New Reality

Everyone knows it: oil prices have gone through the roof. The price of benchmark crude rose 11% this year alone, to about $67 per barrel, before pulling back a little. But many in the industry have always figured that prices would sooner or later simmer down. Read More....

***Scheduled System Maintenance***

The XPRESSTRADE system will be inaccessible from 9 AM CT until approximately 11 AM, on Saturday January 27th.We apologize for any inconvenience.

Soft Dollar This Morning on GDP Figures

The Dollar is very soft this morning on GDP figures, which showed a very meek 1.1% rise in Q4. Markets were looking for a figure closer to 3.00%, which calls into question some very fundamental assumptions, namely the soundness of continued U.S. growth. Read More....

Soybeans On The Rise

Soybean futures traded at the CBOT opened 10 ½ cents a bushel higher today fueled by strong speculative buying. Going into the weekend and following heavy overnight trading, concerns over hot, dry conditions in Argentina have made shorts in the market reconsider their positions. Forecasts for the region continue to be dry and warm for the upcoming week, which is expected to deplete soil moisture for developing soybeans. Read More....

Bulls still in control of the Sugar market:

Bulls still in control of the Sugar market: In what has become a familiar story lately, Sugar futures surged higher. Trade houses were early buyers pulling prices higher on the opening. Weak longs used this as an opportunity to book some profits and prices briefly traded lower on the day. Read More....

Thursday, January 26, 2006

Firm Dollar Today!

The Dollar was firm throughout the afternoon, after receiving a solid durable goods report and very acceptable weekly jobless claims figure (283,000). The Yen continued to be particularly soft, after the Nikkei rose a full 240 points overnight. It would be too early to declare that last year's pattern of "falling Yen, rising Nikkei" has been reestablished, but the pattern is a familiar one. Tonight will see some important Japanese data --namely CPI and retail sales figures --which have the potential to shake-up Yen pairs.

The USD/CAD broke through the stiff resistance of 1.15, and is currently trading at 1.1493. The pair may be drawing strength from a Bank of Canada economic paper that painted an upbeat analysis of the Canadian economy. 2006 GDP growth was estimated to be above 3%. It remains to be seen if the "loonie" can stay south of 1.15, but thus far, it is holding firm.

Final Web Poll Results

What should recently appointed Federal Reserve Chairman, Ben Bernanke, focus more on in 2006?

Energy Prices (30.6%)

Housing Markets (29%)

Reconstruction Efforts (19.4%)

None of the above (21%)

Chicago Wheat Trading on the rise

Chicago Wheat futures rallied on speculative short covering and continued fund buying as prices crossed important chart levels. Concerns over continued dry weather in Oklahoma and Texas are supporting new-crop prices. Also, there are reports out of the Ukraine, that a portion of this season’s crop has experienced winterkill, helped support prices. March Wheat closed up 9.5 cents at 3.42 a bushel.

Join Us Today for Our Walkthrough of The XPRESSTRADE Website at 1pm CST!

Though we expect you'll find our website to be refreshingly intuitive and user-friendly, you might still like to join us for a live, online system walk-through. This is a new service that we've decided to offer, and we think it'll be a great way for both new and existing clients to learn about everything our browser-based trading platform has to offer.

These training sessions will be held twice weekly and take place online, in a virtual classroom. If you're interested in participating, you'll simply log into the training site at one of the designated times, and you can watch in real-time as a member of the XPRESSTRADE customer service team moves through the website, pointing out all the tools at your disposal. You can even listen to the instructor over your computer speakers.

At the end of each online group training session, you’ll have the opportunity to post questions for the instructor. Not only will you receive direct answers to your questions, but you might very well find that answers to questions from your fellow traders will be helpful to you, too. We encourage you to give this new complimentary service a try!

Every Wednesday at 12:00PM CST and Every Thursday at 1:00PM CST

Dollar Maintaining Recent Gains!

The Dollar is maintaining its recent gains this morning against most majors and is particularly strong against the Yen. Weekly jobless claims rose to 283,000 in the latest week, which was on target and encouraging. There is no longer any talk of Katrina in the employment data, which implies that the U.S. economy had the resilience to move past that sizable interruption. Read More....

Silver Is Shining Bright!

Silver is shining bright: Silver futures put in a sterling performance yesterday, hitting 19-year highs. Much of the buying was by speculators on word that Barclays Global Investors may be moving closer to winning approval by the SEC to offer a Silver based exchange-traded fund(ETF). Read More....

Wednesday, January 25, 2006

Firm Dollar Today!

Although existing home sales were disappointing this morning, the Dollar was very firm throughout the day. On an annual basis, existing home sales through December were 6.6 million. It was expected at 6.84 million. It is becoming increasingly clear that the U.S. housing sector is getting softer, though few expect a significant sell-off. Lower crude prices helped the Dollar today, as it rose steadily against the other majors.

Crude futures shot down!

It was a mixed bag for energy traders today, as the weekly energy stocks report caught most traders and analysts by surprise. The EIA reported a surprising drop in Crude Oil stocks of 2.3 million barrels as of January 20th. This was opposed to an expected gain of over 750,000 barrels. Read More....

Dollar, Pusing Back Yesterday's Losses

The Dollar is pushing back yesterday's losses this morning. Moderating crude prices are helping matters. The only piece of data on the U.S. calendar is the bell-weather existing home sales through December, which slid 5.7% in December to 6.6 million on an annual basis. Read More....

Copper Futures Riding High!

Copper futures riding high! Metal mania! This best describes the action in the metal futures markets lately, with contract highs being made across the board. One of the leaders in this frenzy is the Copper market. Comex Copper futures made a new all-time high this morning, as commodity funds, including so called "buy only" index funds, continue to bid-up prices. Copper stocks have been tight, with stock draws in both London and Shanghai signaling that demand is still strong. Read More....

Join Us Today at Noon CST for a Platform Walkthrough!

Though we expect you'll find our website to be refreshingly intuitive and user-friendly, you might still like to join us for a live, online system walk-through. This is a new service that we've decided to offer, and we think it'll be a great way for both new and existing clients to learn about everything our browser-based trading platform has to offer.

These training sessions will be held twice weekly and take place online, in a virtual classroom. If you're interested in participating, you'll simply log into the training site at one of the designated times, and you can watch in real-time as a member of the XPRESSTRADE customer service team moves through the website, pointing out all the tools at your disposal. You can even listen to the instructor over your computer speakers.

At the end of each online group training session, you’ll have the opportunity to post questions for the instructor. Not only will you receive direct answers to your questions, but you might very well find that answers to questions from your fellow traders will be helpful to you, too. We encourage you to give this new complimentary service a try!

Every Wednesday at 12:00PM CST and Every Thursday at 1:00PM CST

Tuesday, January 24, 2006

Cocoa crumbles under heavy selling!

Cocoa futures fall to the lowest levels of 2006, as speculative accounts bail-out of their long positions. The volatile political situation in the Ivory Coast has calmed somewhat, with reports of President Laurent Gbagbo's ruling party returning to the transitional government. Read More....

Peaking Rates, Fuel Costs, and Geo-Politics Softening the Dollar Today

The Dollar was soft today for many of the familiar reasons (peaking rates, fuel costs, geo-politics). Tomorrow has quite a lot of data on the calendar, including the German IFO index and the Bank of England MPC minutes, which will help the markets gage the future of EU and English interest rates. The Bank of England voted to keep rates unchanged this month, but a vote count with more than 2 "no votes" may precipitate a sell-off in Sterling pairs, as it would signal that rates may be falling in March or even February.

USD/CAD...1.15 Triple Bottom?

The Dollar remained under pressure on Monday, largely owing to high fuel prices and geo-political concerns. Matters were not helped by the Conference Board's lending indicators report, which came in at .1% for December. This was lower than the expected .9%. Read More....

What Is Brewing In Coffee?

What's brewing in Coffee? Coffee traders are at a stalemate, with prices hovering near 7-month highs. Speculators have started to book profits on their long positions, and roasters continue to buy futures to hedge their winter needs. This tug-of-war has kept prices in a tight range the past 2 weeks. Read More....

Monday, January 23, 2006

Traders knock the Nikkei lower!

Japanese stock index futures closed lower, with the March Nikkei futures losing 2.3%. Much of the day's selling was tied to Friday's plunge in U.S. markets and continued fall-out from the Internet company Livedoor scandal. Rising Oil prices are also a concern, with lead month contracts poised to reach $70 a barrel. Read More....

Dollar Still Under Pressure!

The Dollar remained under pressure today, largely owing to high fuel prices and geo-political concerns. Matters were not helped by the Conference Board's lending indicators report, which came in at .1% for December. This was lower than the expected .9%. Although U.S. equities were essentially flat on the day, there is quite a lot of caution hanging over the market, which is also affecting the greenback.

CBOT Gold Complex Surpasses 34,000 Contracts

Chicago, IL, January 20, 2006 – The Chicago Board of Trade (CBOT) announced today that the CBOT Gold Complex (100 oz. Gold and mini-sized Gold contracts) had a record today, setting new daily volume records for each contract as well as the overall complex. Volume for the Gold Complex jumped to 34,338 contracts, up from the last volume record of 25,226 contracts set on January 9, 2006. Read More....

Sugar Market Becomes A Monster!

Sugar explodes! The normally calm Sugar market has become a monster, with its second consecutive 100+ point day. Massive short-covering is behind the recent move, much of it coming from commercials who are covering their hedges and buying the Mar/May spread. Read More....

Interesting Week Ahead For The Pairs

The coming week may prove an interesting week for traders of many asset classes. After last week's downturn in equities, which began in Japan and found its way to the U.S. exchanges on Friday, equity investors spent the weekend taking a hard look at matters. Read More....

Friday, January 20, 2006

25-year highs in Sugar!

25-year highs in Sugar! Not since 1981 when Ronald Reagan was in the White House, and Disco was on its way out were Sugar prices this high. The lead-month March contract traded as high as 17.25 today as commodity funds, speculators, and trade houses were all buyers this morning. Massive sell stops were triggered on the opening, as the market gapped opened above the 1990 highs at 16.28. Read More....

Dollar Under Heavy Pressure

The Dollar was under heavy pressure today, as the crude pushed ever higher on the situation in Nigeria. Although the preliminary Michigan sentiment survey was strong at 93.4 for January, the sour mood on Wall Street contributed to the Dollars woes. With the Dow tumbling over 200 points on a combination of poor earnings (Citigroup and GE), oil, and terrorism threats, the greenback had few friends today.

NYBOT Top Performers released in Commodity Study

New York, NY, January 19, 2006 – The New York Board of Trade® (NYBOT®) Sugar No. 11sm contract (symbol SB) ranked second out of 23 physical commodity futures markets, for a second consecutive year, as tracked in a recent Ranked Return analysis by Bloomberg L.P., a market news and data company. The nearest NYBOT Sugar futures contract soared 62.4 percent, compared with a 59.44 percent advance in 2004. NYBOT’s Frozen Concentrated Orange Juice (FCOJ) futures contract (symbol OJ) ranked fourth, advancing 45.4 percent, compared with a 41.7 percent increase in 2004. Read More....

King Cotton: Things Are Starting To Look Up For Cotton Bulls

King Cotton: things are starting to look up for Cotton bulls, as prices have swung to the upside the past 6 weeks. Improved export sales are among the reasons behind the recent rally, and today's USDA weekly export sales report provides further fuel to the rally. Today's report had Net Upland sales at 327,600 running bales. Read More....

EUR/CAD A Possible Oil Play?

Forex pairs are trading in familiar ranges heading into the final session of the week. For all the outside developments hanging over the markets, it was a rather dull week for most currencies. The Dollar did manage to fight-off yesterday's ramblings from Osama Bin Laden, but remained largely unchanged. The Dollar Index is down just slightly early on Friday. Read More....

***Until Further Notice ADM Floor Brokers At NYBOT*****

Are Accepting Market Orders Only on Sugar Options.

Thursday, January 19, 2006

Sugar poised to test 1990's highs!

March Sugar soared to a new contract high of 16.22 this morning, as trade and speculative accounts continue their buying spree. Today's lower opening gave bullish traders a chance to pick up long contracts on sale, and they did not miss their chance. Read More....

Out of Range Pairs Today!

Major FX pairs were mostly range bound today, though the ranges were wider than in recent sessions. This morning's soft housing numbers took the edge off of any Dollar optimism, as traders become concerned of an economic slowdown. On the other hand, weekly jobless claims were especially low. It is possible that the conflicting economic news neutralized the market today.

What's That I Hear? Nymex Oil Futures on Globex?

Nymex May Offer Oil Futures on CME's Globex System, People Say
Jan. 19 (Bloomberg) -- The New York Mercantile Exchange, the world's largest energy market, may shift electronic trading of its oil, natural-gas and gasoline contracts to the more widely used Globex system of the Chicago Mercantile Exchange. The Nymex board has formed a subcommittee that is considering using the CME's Globex, the biggest electronic- trading system for interest-rate futures contracts, to replace its Access system for after-hours trading of energy futures, according to two people briefed on the matter who declined to be identified because the deliberations are private. Read More....

Join Us Today For A Walkthrough The XPRESSTRADE Website at 1PM CST

Though we expect you'll find our website to be refreshingly intuitive and user-friendly, you might still like to join us for a live, online system walk-through. This is a new service that we've decided to offer, and we think it'll be a great way for both new and existing clients to learn about everything our browser-based trading platform has to offer.

These training sessions will be held twice weekly and take place online, in a virtual classroom. If you're interested in participating, you'll simply log into the training site at one of the designated times, and you can watch in real-time as a member of the XPRESSTRADE customer service team moves through the website, pointing out all the tools at your disposal. You can even listen to the instructor over your computer speakers.

At the end of each online group training session, you’ll have the opportunity to post questions for the instructor. Not only will you receive direct answers to your questions, but you might very well find that answers to questions from your fellow traders will be helpful to you, too. We encourage you to give this new complimentary service a try!

Every Wednesday at 12:00PM CST and Every Thursday at 1:00PM CST

Deadlocked EUR/USD

The Dollar is firm this morning after yesterday's largely deadlocked session, which saw the Dollar Index close unchanged. Dollar bulls are taking comfort in the strong weekly jobless claims, which dropped by 36k to 271k - the lowest level in nearly six years. Read More....

Crude Oil Leading the Pack

All eyes on today's EIA report: Energy prices have been on a tear recently, with Crude Oil leading the charge, rallying over $7 since the end of December. Much of the gain has been tied to political unrest in Nigeria and potential sanctions for Iran over the re-start of their nuclear program-- both of which threaten Crude Oil supplies. Read More....

Wednesday, January 18, 2006

Bulls bale out of Cotton.

Commodity funds were sellers across nearly all commodity markets today, and Cotton was no exception. Speculative accounts have recently turned net long, according to the most recent Commitment of Traders report, but that may change after today's sell-off. Read More....

Choppy FX Markets Today!

FX markets were choppy and ultimately range bound throughout the U.S. session. This morning's tame CPI data was within analyst expectation and did little to clarify the Fed's next action. Higher fuel prices have not yet trickled into the core inflation rate, which remains largely contained. Debate continues as to whether rates will peak at 4.5% or 4.75%. The Dollar Index closed unchanged today.

NYMEX STUCK ON OPEN-OUTCRY


Gold is trading around 25-year highs. Crude oil continues to hover over $60 per barrel. Natural gas recently jumped to an all-time record, settling above $15 for the first time ever. Copper is in the midst of a powerful bull market. Gasoline prices have been making headlines for month. These are the best of times for the New York Mercantile Exchange, the world’s primary venue for trading in energy and metal futures. NYMEX trading volumes have been surging, and the exchange’s memberships are at historically lofty levels – at the time of this column, a full NYMEX membership last changed hands for $3.6 million.

So everyone loves the NYMEX right now? Not exactly. While many other futures markets have been moving swiftly toward electronic trading, the NYMEX’s flagship metal and energy futures continue to trade in traditional, open-outcry pits during regular business hours. During times like these, when trading is heavy and volatility can be extreme, floor brokers standing in the trading pits simply become overwhelmed by the sheer volume of paper and the speed with which the markets are moving. This can create maddening delays in fill confirmations. Traders occasionally don’t know if they’re filled, and if so, at what price.

Computerization surely could save the day – everyone knows by now that electronic trading is undeniably faster, more accurate, and less expensive than trading in the old-fashioned pits. But NYMEX members, who make their living on the trading floor and who effectively control the exchange, aren’t eager to change. And at the same time, management looks seriously out-of-touch. NYMEX’s new open-outcry trading floor in London to compete against the all-electronic IntercontinentalExchange was dead on arrival. And its latest marketing campaign, touting itself as “fitted with the latest technology – humans” is mind-boggling. That’s just not what today’s futures trader wants from an exchange.

ACCESS PLATFORM WOES

With so much opportunity in the metal and energy markets, many active traders understandably wish to participate in the after-hours trading session. NYMEX does operate an electronic trading platform for this purpose, known as ACCESS, but the system has some dire shortcomings. Every futures brokerage company offering overnight trading in metal and energy futures is keenly aware of these glaring limitations, but our experience has been that most traders aren’t.

The most serious ACCESS weakness has been the total and inexplicable lack of an open interface. Most electronic markets – the Chicago Mercantile Exchange's Globex system, or the Chicago Board of Trade's eCBOT platform, for instance – allow brokers to connect their systems directly with the exchange, thereby allowing orders and fill confirmations to be routed back and forth electronically, with no human intervention. But as hard as it may be to believe, ACCESS has never offered an open link.

Consequently, orders for the after-hours energy and metal markets must print on a trading desk, and clerks must manually enter these orders into the ACCESS system. When an order has been executed, ACCESS neither reports the fill nor alerts the broker in any way to the fill, which gives us little choice but to continuously – and manually, of course – search for filled orders on the system. Though we all do our best to work around these ACCESS shortcomings, it’s painfully inefficient. Of all the exchanges to which we offer access, and of all the electronic trading platforms with which we deal, nothing’s more frustrating than trying to work with the ACCESS platform.

In a nutshell, NYMEX desperately needs to improve its electronic trading platform, and fast. An open API (application programming interface) is a must, to which brokers can connect their systems, and through which orders and fills can flow quickly, efficiently, and automatically. The brokerage companies that send business to NYMEX deserve better, and certainly the trading public, which values speedy order execution and fill reporting, deserves better.


NYMEX NEEDS TO MODERNIZE

Happily, there could be signs of progress ahead. A possible open interface to ACCESS may be in the works, though the word is that it will work only for energy futures, and not metals. Then there’s the new ClearPort platform that NYMEX finally has begun using for EmiNY energy contracts, but early reviews are that it’s far from perfect. Perhaps the most exciting prospect for improvement is the news that the Chicago Mercantile Exchange reportedly is interested in launching a bid for 10% of the New York Mercantile Exchange. Even the slightest hint that energy and metal futures someday could trade on the CME’s battle-tested Globex platform is enough to get us excited.

It’s imperative that NYMEX understand that time is of the essence – the trading public, futures brokers, and the exchange itself need solutions now. Gold, silver, crude, heating oil, and all the other NYMEX products are terrific. But the exchange needs to take some bold, decisive steps toward modernization. We’ll be hoping that this important U.S. financial institution is up to the challenge.

FX Pairs Deadlocked Heading Into Wednesday Session

Major FX pairs continue to be deadlocked heading into Wednesday's U.S. session. US CPI figures were released this morning, showing a slight pullback in the headline number .2%. The core rate was .2%. Canadian CPI was also tame. It is difficult to see how these figures will affect upcoming Fed decisions. The big question remains whether the peak will be 4.5% or 4.75%. Read More....

Join Us Today For A System Walkthrough At 12PM CST

Though we expect you'll find our website to be refreshingly intuitive and user-friendly, you might still like to join us for a live, online system walk-through. This is a new service that we've decided to offer, and we think it'll be a great way for both new and existing clients to learn about everything our browser-based trading platform has to offer.

These training sessions will be held twice weekly and take place online, in a virtual classroom. If you're interested in participating, you'll simply log into the training site at one of the designated times, and you can watch in real-time as a member of the XPRESSTRADE customer service team moves through the website, pointing out all the tools at your disposal. You can even listen to the instructor over your computer speakers.

At the end of each online group training session, you’ll have the opportunity to post questions for the instructor. Not only will you receive direct answers to your questions, but you might very well find that answers to questions from your fellow traders will be helpful to you, too. We encourage you to give this new complimentary service a try!

Every Wednesday at 12:00PM CST and Every Thursday at 1:00PM CST

Panic Selling Hits Nikkei Futures!

Panic selling hits Nikkei futures! The week got off to a rough start for traders of Japanese stocks and stock index futures, as a probe into the internet company Livedoor Co. for possible securities law violations has caused investors to bale out of the Japanese market. The March Nikkei futures fell 380 points last night, a drop of 3%, on top of a 445 point decline the previous day. The Tokyo Stock Exchange had to end trading 20 minutes early, as the extremely heavy volume exceeded the computerized exchange's system capacity. Read More....

Tuesday, January 17, 2006

Speculators sell citrus!

Selling was the name of the game in Orange Juice futures this morning, as Juice bulls are beginning to throw in the towel on any chance for a damaging freeze this winter to the Florida orange crop. Weather has been mild this year, with normal to above normal temperatures expected again this week. Read Now....

Static FX Pairs Today

FX pairs kept to trading ranges today, after some mixed U.S. data early in the session. With crude now north of $66/barrel, markets are becoming cautious, as events in Nigeria and Iran play-out. These geo-political concerns have strengthened Gold and the Swissie, and kept the bulls from oil-dependent currencies. There has been a lot of "Fed-talk" ahead of Chairman Greenspan's final meeting, with renewed speculation that 4.5% may be the peak, and not 4.75%.

Introducing Our New E-Funds Program


Our new e-Funds feature enables traders who reside in the U.S. to move money from external accounts at your bank, credit union, or savings and loan to your XPRESSTRADE account. It's an easy, cost-effective means of depositing funds into your trading account. You can also transfer funds from XPRESSTRADE back to one of your external accounts. We hope you're excited about this new service! Read More....

USD/JPY: Nearly Overbought

On Monday the Dollar was broadly firm against other majors in a holiday-shorted trading day with U.S. Banks closed. Tuesday's European session also saw a stronger Dollar. Issues with Iran nuclear program continue to hover over the market, weighing on metals and energy markets, as well as the U.S. Dollar. Read More....

Profit-taking starts to hit the Gold market:

Profit-taking starts to hit the Gold market: After a run to 25-year highs, the Gold market looks ready to take a breather. Prices started the open-outcry session lower this morning, after contract highs were made during the overnight session at 565.50, on the back of strong buying in Asia. The market this morning could sustain that momentum, as a strong US Dollar verses both the Euro and the Yen gave traders a reason to book some profits. Read More....

Friday, January 13, 2006

Sweet! Sugar Makes New Contract Highs!

Sweet! Sugar makes new contract highs! Traders long Sugar futures will be having a great weekend, as the March contract hit 11-year highs. All the market players were buying today, with local traders, speculators, and trade houses bidding-up prices. Buy stops were triggered once March broke the previous highs at 15.17. Read More....

Dollar Slips Today

The Dollar slipped today on soft retail sales data, early in the North American session. Although producer inflation was tame, the greenback sold-off on concerns that the U.S. consumers might curtail their spending habits in 2006. Outside concerns about Iran also added to the Dollar softness today.

Dow Jones FCOJ Review, featuring XPRESSTRADE Analyst Mike Zarembski

March frozen concentrated orange juice futures fell, as traders picked up
from where they left off the previous day and resumed selling the market with
no threat of freezing temperatures in Florida, sources said Friday.

Most-active March FCOJ settled 110 points lower at $1.2425 a pound on the New
York Board of Trade. May fell 80 points to $1.2500.

The Nybot will be closed Monday for the Martin Luther King Jr. holiday.
Regular trading hours will resume on Tuesday.

"After yesterday's (Thursday) surprisingly bearish close with the supply
number, I think it was more follow-through selling here as traders are thinking
that values are fairly priced for the crop size and they might try the downside
here," said Mike Zarembski, analyst and futures desk manager at
XPRESSTRADE.com in Chicago.

The U.S. Department of Agriculture on Thursday scaled back its 2005-06
Florida orange production estimate to 158 million 90-pound boxes, from 162
million in December. While the decline was more than expected, prices still
closed lower. The lower estimate is due to hurricane damage, production lost to
citrus canker and other diseases and small fruit size.

Friday's market was simply a continuation of that recent bearish theme,
sources said.

In addition, Florida temperatures have been mild for January, and there is no
risk of damaging cold in sight. Readings are expected to be near to below
normal on Sunday, then near to above normal Monday and above normal on Tuesday,
DTN Meteorlogix said.

The lack of a freeze and the mild temperatures may have prompted some bullish
traders to liquidate positions ahead of the long holiday weekend, Zarembski
said.

Meanwhile, Florida agriculture officials in conjunction with the USDA have
begun to look at ways other than complete eradication in dealing with citrus
canker. The current law states that any tree within a 1,900-foot radius of an
infected one must be destroyed, but the USDA said Wednesday that it no longer
believes the disease can be wiped out.

"We'll be working with the USDA and their scientific people to develop the
best management practices and other management recommendations for what will
become a suppression/management program rather than an all-out eradication
program," said Terence McElroy, spokesman at the Florida Department of
Agriculture and Consumer Services.

It will take about 30 to 60 days to come up with a new plan, McElroy said.

Though prices will have to travel another 6.75 cents to the downside, if
March FCOJ can break the $1.1750 level "that would confirm that the highs may
be in for the season," Zarembski said.

March FCOJ finds technical support at $1.2365, $1.2340, $1.2215, $1.2160 and
$1.20. Resistance is pegged at $1.2520, $1.2550, $1.2710, $1.2750 and $1.2790.

FCOJ futures volume was estimated at 1,198 contracts, with 388 calls and 285
put options traded.

Soft Dollar This Morning

The Dollar is soft this morning, heading into Friday's U.S. session. Thus far, the price movement is in reaction to today's Dollar-negative news -- weak retail sales numbers. December's sales were up .7%, slightly less than expected. Factoring-out auto sales, the numbers were also on the soft side (.2% against expectations of .4%). Read More....

Lumber Draws Buyers Out Of The Woodwork

Lumber rally continues: Yesterday's lower opening drew buyers out of the woodwork, as short covering by local traders and speculators drove the most active March Lumber contract to a limit-up close. Floor sources reported that the buying was steady throughout the session, and a lack of commercial hedge selling allowed prices to climb. Read More....

Holiday Trading Schedule

Thursday, January 12, 2006

Natural Gas falls to 5 month lows!

It's January 12th, and the temperature here in Chicago is 50 degrees. What is wrong with this picture? That is what traders in Natural Gas futures are saying, as they continue to sell-off the market. With these unseasonably warm winter temperatures in the Midwest and Northeast, it was no real surprise that the EIA announced that only 20 bcf of Natural Gas was taken out of storage last week. Read More....

Strong Dollar Today

The Dollar was strong today, after the improvement in November's trade deficit was announced. Given that other country's trade figures took a tumble this week (Canada, UK, France), the number seemed especially good. The ECB and Bank of England also met today and decided to leave rates unchanged. Against this backdrop, the Dollar gained against the other majors.

USD/JPY....Becoming Indecisive

The Dollar is strong heading into the North American session on improving trade deficit figures in the U.S. The November figure was -$64.21B. Although hardly a comfortable number, it is much improved from last month's record -$68.9B. The focus now shifts to the January 18 th TIC report, in hopes that this shortfall can be safely financed. Read More....

Join Us Today at 1pm CST For a Walkthrough The XPRESSTRADE Website

Though we expect you'll find our website to be refreshingly intuitive and user-friendly, you might still like to join us for a live, online system walk-through. This is a new service that we've decided to offer, and we think it'll be a great way for both new and existing clients to learn about everything our browser-based trading platform has to offer.

These training sessions will be held twice weekly and take place online, in a virtual classroom. If you're interested in participating, you'll simply log into the training site at one of the designated times, and you can watch in real-time as a member of the XPRESSTRADE customer service team moves through the website, pointing out all the tools at your disposal. You can even listen to the instructor over your computer speakers.

At the end of each online group training session, you’ll have the opportunity to post questions for the instructor. Not only will you receive direct answers to your questions, but you might very well find that answers to questions from your fellow traders will be helpful to you, too. We encourage you to give this new complimentary service a try!

Every Wednesday at 12:00PM CST and Every Thursday at 1:00PM CST

How Many Beans Is Too Many?

Too many beans? That is the word from the USDA this morning, as they reported U.S. Soybean production at 3.086 billion bushels, which is 43 million bushels above November estimates. The real shocker was the ending stocks number, which came in at 505 million bushels. Read More....

Wednesday, January 11, 2006

Profit-taking drops Coffee futures!

With profits burning a hole in their pockets, commodity, funds started closing out some of their long positions today, causing prices to close at the weeks lows. Origin selling was also noted, as prices have now reached an area where growers can lock-in profits. Read More....

FX Markets Restrained Ahead of Tomorrow's ECB Meeting

FX markets were restrained ahead of tomorrow's ECB meeting, although the Dollar slipped against the Euro on speculation that rates will soon be rising in the eurozone. The Swiss Franc also had a good day on Iranian nuclear tensions. The primary event Thursday will be ECB President Trichet's afternoon press conference. Although no change in rates is expected, the follow-up commentary is likely to provide insight into future actions.

Get Your Free Gold Futures Trading Kit

Join Us Today at Noon CST For A Walkthrough Our System

Though we expect you'll find our website to be refreshingly intuitive and user-friendly, you might still like to join us for a live, online system walk-through. This is a new service that we've decided to offer, and we think it'll be a great way for both new and existing clients to learn about everything our browser-based trading platform has to offer.

These training sessions will be held twice weekly and take place online, in a virtual classroom. If you're interested in participating, you'll simply log into the training site at one of the designated times, and you can watch in real-time as a member of the XPRESSTRADE customer service team moves through the website, pointing out all the tools at your disposal. You can even listen to the instructor over your computer speakers.

At the end of each online group training session, you’ll have the opportunity to post questions for the instructor. Not only will you receive direct answers to your questions, but you might very well find that answers to questions from your fellow traders will be helpful to you, too. We encourage you to give this new complimentary service a try!

Every Wednesday at 12:00PM CST and Every Thursday at 1:00PM CST

Corn Traders Are All Ears For Tomorrow's USDA Report

Corn traders are all ears for tomorrow's USDA report: The corn market is in a conundrum. First, prices have rallied on buying tied to "buy-only" index funds, who purchase various commodities regardless of price, to mimic a basket of commodities, such as the Goldman Sachs commodity index. Read More....

The "Dollar Swissy" and Geo-Politics

This morning the major pairs are mixed and rather tame. UK trade data was soft on all accounts (overall, EU, non-EU), which cast a cloud over Sterling pairs and led to a small sell-off in the Pound. Otherwise, markets are adding risk premiums in response to increased friction relating to Iranian nuclear designs. Read More....

Tuesday, January 10, 2006

Pork Gets Chopped

Pork gets chopped: It was an ugly day for those long Lean Hog Futures today, with the February and April contracts closing down their 200 point limit and falling to two month lows. Commodity funds, who were net-long 11,477 contracts as of the most recent Commitment of Traders report, were throwing in the towel on their positions. Read More....

Tight Range For The US Dollar

It was a very dull U.S. session in FX trade today. After bouncing back from some early losses in Europe, the greenback (and all majors) kept to tight ranges for the remainder of the afternoon. We are in the midst of a thin week in terms of data-flow, with markets now looking forward to Thursday's ECB meeting. Although no change is expected, analysts will be looking forward to the follow-up commentary of Jean-Claude Trichet, who yesterday expressed optimism over global growth prospects.

What Is Your New Year's Resolution?

What are your resolutions for the coming year? Exercise more, and lose some weight? Get your household budget under control? Go to church more regularly? While many of these types of resolutions fall by the wayside after just a few months, we’d like to share some long-term futures trading resolutions for 2006, based on our experience serving futures and options traders in more than 100 countries worldwide. These aren’t one-time pledges, but solid trading practices for you to follow throughout the year. And if you stick with them, we think there's a very good chance you'll become an even better trader.

Approach the futures markets realistically. Beginning futures traders who expect to quit their "day job" and make a good living trading futures in their first few years of trading are usually disappointed. You don't become a successful doctor, lawyer, or business owner in the first couple years of the practice. It takes hard work, dedication, and perseverance to achieve success in any field of endeavor -- and trading futures is no different. Futures trading is not the easy, "get-rich-quick" scheme that a few unsavory characters make it out to be.

Limit the number of markets you follow and trade. Don’t spread yourself too thin by trying to follow several markets. Most traders have their hands full keeping abreast of just a few markets. At XPRESSTRADE, we offer access to 25 leading futures exchanges around the world, and you can trade more than 300 different commodity and financial futures products. But that certainly doesn't mean you ought to try to trade everything! Pick a handful of markets that are of greatest interest to you, and focus on them intently. It's far better to concentrate on a handful of markets than to try to trade everything.

Establish a trading plan in advance. You’ve heard this a million times: Plan your trades and trade your plan. But, there’s a good reason this phrase has become so common. Developing a trading plan helps you remove emotion from your decision-making process. And, the emotions of fear and greed are always in the wings once you have money on the line. Having your own personal plan allows you to determine if subsequent setbacks are either a failure to remain disciplined, or problems with the plan itself that indicate an adjustment to the plan is due. Accordingly, any successes can be similarly assigned to either adherence to your plan or dumb luck. Traders with no pre-determined trading plan are flying by the seat of their pants, and that's usually a recipe for a "crash and burn."

Trade markets you can afford, and don't over-leverage. Some markets are riskier than others, so always check the volatility and daily ranges of any market to be sure that it fits your trading criteria. And don’t make the beginner’s mistake of devoting all the money in your account to margin requirements for open positions. Because futures trading margin requirements are low, there's a good chance you have enough money to trade multiple contracts. But just because you can afford to trade 20 contracts, for instance, doesn't necessarily mean you should -- perhaps you ought to try 5 or 10 contracts to see how things go, and if you're successful, gradually increase your trading size. Remember that drawdowns are inevitable, so you should avoid placing yourself in such a position that just a couple of bad trades can wipe you out -- or negate your ability to recover.

Know when to exit a trade. Know the objectives for your trade going into it. But, always have a bailout plan and place a protective stop order whenever possible, given exchanges’ order acceptance policies and market liquidity. Ask yourself, "At what point do I absolutely not want this position any more?" Call that your doomsday stop and get it working. If such a stop does get hit, then something is probably very wrong with your trade. Remember, stops do not guarantee against losses -- markets can sometimes move quickly through them. Also, remember that stop orders can remain unfilled, as in limit moves. Picking a place to bail out of a trade is a powerful first step toward taking control of your trading.

Always trade with protective stops. Using protective buy stops or sell stops upon entering a trade provide a trader with a good idea of about how much money he or she is risking on that particular trade, should it turn out to be a loser. Protective stops are a good money-management tool, but are not perfect. There are no perfect money-management tools in the world of futures trading. But you should know that most successful traders will not sit on a losing position very long at all. They'll set a tight protective stop, and if it's hit, they'll take their losses (usually minimal) and then move on to the next potential trading opportunity. Traders who sit on a losing trade, "hoping" that the market will soon turn around in their favor, are usually doomed. If you need any assistance learning to use stops -- or if you'd like to know more about XPRESSTRADE's Trailing Stops functionality -- please don't hesitate to contact us.

Don't trade against the trend or try to pick tops and bottoms. It's human nature to want to buy low and sell high (or sell high and buy low for short-side traders). Unfortunately, that's not at all a proven means of making profits in futures trading. Top pickers and bottom-pickers usually are trading against the trend, which is a major mistake. You're far better off looking to identify beginning market trends, confirming the trend, and then trading with the trend. Sometimes trying to pick a top in a powerful bull market is like stepping in front of a speeding locomotive. And trying to pick a bottom in a falling market can be like trying to catch a falling knife. Trade with the trend, not against the trend. "The trend is your friend."

Accept responsibility for your own actions. When you have a losing trade or are in a losing streak, don't blame your broker or someone else. As a self-directed trader, you have total control over your account. You're calling the shots and placing your own orders. You're the one who is responsible for your own success or failure in trading. You deserve all the credit when trades are successful, but you also have to take responsibility for trading outcomes that aren't profitable. If you feel you are not in firm control of your own trading, then why do you feel that way? You should make immediate changes that put you in firm control of your own trading destiny.

Ask for help as you need it. Futures trading is not easy, and being successful requires dedication and educating yourself as much as possible. There are all kinds of really useful resources available on the public side of the XPRESSTRADE website ( www.xpresstrade.com ), including exchange brochures, a self-study courses, a variety of starter kits, and even an online bookstore for traders. But, don't feel that you need to tackle the futures markets alone, and don't be afraid to ask for help. One of the things that sets XPRESSTRADE apart from other brokerage companies is our exceptional customer support. We're here 24 hours per day during the trading week, and we strive to be quick, knowledgeable, and friendly. If we can be of assistance to you, please don't hesitate to contact us, whenever the need arises. You can reach us by toll-free phone, e-mail, or even live chat.

Take the Futures Power Course. Whether you're a newcomer to the futures markets or an experienced trader, the Futures Power Course can help you become a more confident, and potentially more successful, trader. This is a complete online futures trading course, and it offers an honest, no-nonsense, no-hype approach to the futures markets. You'll learn to use technical analysis tools. You'll learn how to spot potential trading opportunities. You'll learn how to set entry and exit points. And most importantly, you'll learn the art of risk management and how to avoid common trading mistakes. The course is totally online, so you can take daily lessons at your convenience. But it's backed by support from Jim Wyckoff and the entire XPRESSTRADE customer service team. Learn more about the Futures Power Course today.

Can the Dow Hit All-Time Highs?

Can the Dow hit all-time highs? That is the question stock index traders are asking, as the March Dow futures have solidly closed above the psychologically important 11,000 level. The market is a little more than 7% below the all-time high at 11,840, which was reached back in January of 2000. Corporate earnings have driven the Dow to these lofty levels recently, averaging double-digit gains in 2005. Read More....

Dollar Is Rebounding This Morning

The Dollar is rebounding this morning, after some earlier softness in the European session. The surge/blip of Euro optimism came from three sources: comments from ECB President Jean-Claude Trichet (optimistic about global growth in 2006); German ZEW index (up strong at 71, implying strong sentiment); French industrial production (up 3.1% for November, big surprise jump). Read More....

Monday, January 09, 2006

Soybeans get crushed!

Soybean bears have re-gained control of the market, with lead-month March futures falling to one-month lows. Weather in South America was a driving force in today's decline, with rainy conditions this weekend in the growing regions of Argentina helping to improve growing conditions for this year's crop. Read Now....

Gold Futures Prices Hit 25-Year Highs

Strong demand for commodities, creeping inflation, and growing interest in safe-haven investments recently pushed gold futures to their highest price in more than two decades. Many traders and investors are wondering just how high the price of gold can go.

Gold futures recently traded at their highest level in more than 25 years. But for traders and investors with a longer-term horizon, it’s quite possible that we may be in the early stages of a powerful bull market in gold futures.

During the last major Gold bull market, precipitated by the Iran hostage crisis in the late 1970s, serious geopolitical tensions and the prospect of runaway global inflation played major roles in Gold's rise from $300 per ounce to $850 per ounce. It’s important to note that gold’s all-time high would be roughly $2,200 in current dollars. A number of savvy trading pros expect gold prices to top $850 per ounce this year, and in fact, some are even calling for prices ultimately to reach $2,000 to $3,000. If you think Gold is headed higher, the obvious play is to buy Gold futures or call options. Click here to learn more about trading Gold futures online!

There are plenty of theories for the surge in gold prices -- from increased buying on the part of smaller central banks, to foreign governments diversifying away from dollar-denominated assets, to hedge funds chasing a hot market, to increased demand for jewelry among consumers in growing Asian countries. All of these explanations make sense, but here are a few other considerations to take into account:

- Persistent geopolitical tensions and the return of at least a fear of inflation may push gold higher. Gold is widely considered to be both a safe haven investment during turbulent times as well as a sensible guard against inflation. It’s the only form of money accepted worldwide that’s not tied to the fate of any single country’s economy.

- Anxiety over the U.S. federal government’s burgeoning debt load also could drive gold prices upward. Over the past five years, the U.S. debt has grown sharply, and there’s at least the possibility that some foreign investors could begin to question the country’s ability to repay the amount due and owing. If this were to happen, or if the unthinkable were to happen -- if America were to actually default on its debt -- a stampede to gold potentially could develop.

- Typically, gold is considered relatively expensive when 5 or fewer ounces of gold are needed to match the level of the Dow Jones Industrial Index. Today, even after the market run-up that’s already occurred, the price of gold appears to be relatively low, with roughly 20 or so ounces of the yellow metal needed to match the DJIA. This suggests that there may be plenty of room for gold to rise, regardless of how the stock market performs.

FX Pairs Stay Narrow

FX pairs kept to narrow ranges during the U.S. session, after the Dollar made gains earlier in the day on weaker than expected German data. The calender this week is rather thin, although Japanese household spending figures have the potential to boost Yen pairs overnight.

WARNING! THIS MARKET MAY BE HOT!

Warning! This market may be hot! You may see this disclaimer on the bottom of the daily Coffee chart. Prices have recently rallied to 6-month highs, with commodity funds switching to a net long position in the last couple of weeks. According to the most recent Commitment of Traders report released on Friday, large speculators were net long 2,844 contracts as of 1/3. Read More....

USD/JPY: An Elusive Bottom?

The Dollar finished the first week of year under pressure from a number of sources. The poor sentiment was nurtured by the following: weak fed minutes, soft manufacturing data, softer than expected jobs growth, and rumblings from China. Read More....

Friday, January 06, 2006

Cocoa Has Awaken From Its Slumber Today

Cocoa has awaken form its slumber today to climb to two month highs as a weaker U.S. dollar spurred speculative buying. The day didn't start out promising for Cocoa bulls as prices fell on the opening in a continuation of yesterday's sell-off. However, the lower opening drew nothing buying interest from both commercial and speculative accounts. Read More....

US Dollar Stumbles Into 2006

The Dollar took a moderate tumble this morning after the less-than-stellar non-farm payroll report. Markets were expecting 200,000 new jobs last month, and only 108,000 materialized, although there were big revisions to November's number. After the morning slip, the majors fell into tight ranges to close out the first trading week of the year.

Bush Upbeat On Economy in Chicago Speech

(AP) — President Bush shrugged off a report showing weaker-than-expected job growth on Friday and declared that "the American economy heads into 2006 with a full head of steam." Read More....

Beware of Headlines! Non-farm payrolls up 108,000 in December!

Beware of Headlines! Non-farm payrolls up 108,000 in December! Way below average estimates of 215,000! If you follow the financial markets and you saw this figure, you might think that the economy is slowing and the Fed should think twice about raising rates again this month. Right? Well you have to read the details and not just the headline to get the real story. Read More....

A Full Reversal For The USD/JPY

Overnight FX pairs were subdued in anticipation of this morning's release, the first major piece of data to be released this year -- December's non-farm payroll figure. The figure was a disappointing 108,000. Analysts had been talking in the range of 200,000. Read More....

Thursday, January 05, 2006

Selling sweeps the metals market!

It was a rough day for precious metals bulls as massive long liquidation hit the rings in New York this morning. Gold fell nearly 2 percent, Silver 4 percent, and little known Palladium over 5 percent. Read More....

2005 Commodity Futures Recap

Now that we’ve begun a new year, it’s interesting to look back and reflect on the action in our commodity markets in 2005. While the stock market was largely range-bound in a sideways channel for much of the past years, many commodities rallied strongly. The Dow Jones-AIG Index of 20 commodities ended up at 171.15, up 17.5%, or 25.54 points. Another broad-based measure, the Reuters / Jefferies CRB Index, climbed 16.9%, or 47.93 points, to finish very near a record, at 331.83. Here are a few of the highlights from 2005:

Energy

Crude oil continued to be bellwether for the broader commodities market, helped throughout the year by tight global output and refining capacity, combined with voracious demand for energy among Asia’s growing economies, the U.S., and other heavily industrialized countries.

Beginning in late August, Hurricane Katrina and other storms damaged refineries, drills and pipelines along the Gulf Coast, pushing prices to records of more than $70 a barrel.

In the fourth quarter, rising inventories and relatively warm winter weather is much of the U.S. helped push prices lower, erasing some of the earlier grains. Still, crude-oil futures finished the year at $61.04 a barrel, up 40.5%, or $17.59 at the New York Mercantile Exchange.

Other energy products followed crude oil’s lead. Heating oil futures, for instance, soared 40.5%, or 49.83 cents, to $1.7280 a gallon. The prices of gasoline futures contracts -- a measure of wholesale prices, not including taxes and other markups -- surged 57.1%, or 62.13 cents, to end at $1.71 a gallon.

Natural-gas futures rose even more markedly, jumping 82.6%, or $5.076, to $11.225 a million British thermal units. In Katrina’s aftermath, traders worried about winter shortages of the fuel, and their buying pushed the price records around $15 a million BTUs.

Those worries have since subsided to some degree, but analysts say natural gas remains subject to unique circumstances, since it can be transported only via pipelines to and from fixed delivery points. By contrast, liquid fuels can be transported via tankers or trucks wherever they are needed, from wherever they can be obtained at the lowest cost.

Some markets watchers, including outgoing Federal Reserve Chairman Alan Greenspan, have advocated building more facilities to import liquefied natural gas, thus opening the market to freer competition from overseas suppliers who might push prices lower. Such projects remain a matter of debate among opponents concerned about potential environmental harm or terrorist attacks on such terminals.

Metals

Perhaps the commodity most notable for bucking its usual relationship with the dollar in 2005 was gold, which surged to more than $500 a troy ounce for the first time since 1987. The yellow metal usually is considered a safe haven investment and is a widely accepted store of value when people lose faith in paper money, so it tends to move in the opposite direction from the dollar.

For 2005, gold futures at the New York Mercantile Exchange’s COMEX division rose 18.2%, or $79.60, to finish at $517.10 a troy ounce.

Analysts say a few factors helped the metal rise despite last year’s strengthening dollar, including strong physical demand for jewelry (particularly in parts of Asia, where a growing middle class with disposable income is increasingly able to afford more than simply basic necessities) and other, industrial uses of the metal.

Many analysts say the late-year rally was helped by expectations that the Federal Reserve soon will cease its pattern of interest-rate increases, which effectively take dollars out of circulation and drive up their value. In trader parlance, the gold market already has “priced in” the idea that the dollar will cease to enjoy such support sometime in early 2006.

Other precious metals followed gold’s advance. Silver futures climbed 29.6%, or $2.013, to $8.82 a troy ounce. Platinum contracts advanced 12.7%, or $109.30, to end at $973 a troy ounce on the COMEX.

Industrial-metal prices also were strong, led by the bellwether copper contracts, which leapt 45.4%, or 67.45 cents, to $2.1615 a pound. Palladium, which is the component of the emissions-reducing car parts known as catalytic converters, rose 41.2%, or 41.2%, or $76.25, to end at $261.50 a troy ounce at COMEX.

Agriculture

Grain prices rebounded to some extent, after laggard performances in 2004, though compared with the metals and energies, gains were muted. Speculators have bid prices higher lately, expecting heavy buying in the new year from commodity funds that eventually will have to unwind heavily bearish short positions.

At the Chicago Board of Trade, soybean futures finished at $6.020 a bushel, up 54.25 cents, or 9.9%. Wheat contracts rose 10.3%, or 31.75 cents, to $3.3925 a bushel. Corn futures got into the act as well, rising 5.4%, or 11 cents, to $2.1575 a bushel.

Livestock prices were mixed at the Chicago Mercantile Exchange. Strong beef demand pushed live-cattle futures up 2.9%, or 2.6 cents, to 92.45 cents a pound, while a glut of animals weighed down pork prices -- live-hog futures fell 14.6%, or 11.125 cents, to 65.275 cents a pound. Pork bellies, the part of a slaughtered hog from which bacon is made, fell 12.8%, or 12.1 cents, to 82.15 cents per pound.

Also at the CME, lumber futures, somewhat surprisingly, given the strong U.S. housing market over the course of 2005, were essentially flat, ending at $359 per 1,000 square board feet, up $2.60, or 0.7%.

Tropical Commodities

For a second straight year, storm damage to Florida’s orange crop pushed up prices of juice futures. In 2004, a succession of storms crisscrossed the Sunshine State, but this past year, it took just one well-placed storm, Hurricane Wilma, to drive orange juice futures higher. Contracts on frozen Orange juice soared nearly 45.4%, or 39.1 cents, to $1.252 a pound at the New York Board of Trade. Mark your calendars, and remember that this could be a market worth watching in the second half of 2006.

Other commodities, known as “tropical softs” or “food and fiber,” were boosted by strong demand and, in some cases, poor growing weather. Sugar soared 62.4%, or 5.64 cents, to 14.68 cents a pound. Cotton climbed 21%, or 9.42 cents, to 54.19 cents a pound at NYBOT.

Cocoa futures were an exception to the trend, falling 2.8%, or $43, at $1,504 a metric ton, a unit equal to 2,204.6 pounds. Coffee contracts rose 3.2%, or 3.35 cents, to $1.071 a pound. Some analysts are forecasting a coffee-supply shortfall relative to demand in 2006, a scenario that potentially could lead to higher prices.

Quiet Dollar Ahead Of The NFP

Dollar pairs were eerily quiet and range-bound throughout the U.S. session, and the greenback saw little/no improvement against the other majors. The feeling is that Dollar bulls are waiting on a strong non-farm payroll number tomorrow before placing any large trades. The consensus estimate is for a reading of 200,000.

Sugar Futures Soared To A New Contract High This Morning

Sugar buzz: Sugar futures soared to a new contract high this morning, with prices surging past the 15 cent level. Speculators once again were the main buyers, with buy stops being triggered once the new contract high was made. Supply concerns are taking center stage, with word that Thailand's 2005-2006 crop will be down about 12% to 4.59 million tons. Read More....

US Dollar Under Pressure As Interest Rate Concerns and High Oil Prices Affect Sentiment

The Dollar remains under pressure on Thursday, as interest rate concerns and high oil prices affect sentiment. It seems likely that the Dollar will be hard-pressed to find support ahead of the key non-farm payroll number on Friday. Today's weekly employment claims data is encouraging, with a decline of 35K applicants. This brings the number of claimants to 291,000, a surprisingly strong figure. Read More....

Want To See How Our Platform Works Before Opening An Account? Join Us Today at 1PM CST for a Walkthrough

Though we expect you'll find our website to be refreshingly intuitive and user-friendly, you might still like to join us for a live, online system walk-through. This is a new service that we've decided to offer, and we think it'll be a great way for both new and existing clients to learn about everything our browser-based trading platform has to offer.

These training sessions will be held twice weekly and take place online, in a virtual classroom. If you're interested in participating, you'll simply log into the training site at one of the designated times, and you can watch in real-time as a member of the XPRESSTRADE customer service team moves through the website, pointing out all the tools at your disposal. You can even listen to the instructor over your computer speakers.

At the end of each online group training session, you’ll have the opportunity to post questions for the instructor. Not only will you receive direct answers to your questions, but you might very well find that answers to questions from your fellow traders will be helpful to you, too. We encourage you to give this new complimentary service a try!

Every Wednesday at 12:00PM CST and Every Thursday at 1:00PM CST

Introducing Our New 2006 Trading Calendars!

Welcome to our 2006 Pocket-Size Trading Calendar give-away page! Kindly provide us with the following information (which will be kept strictly confidential), and we'll be happy to send you a complimentary Trading Calendar, in which you'll find important trading dates like First Notice Days, Last Trading Days, option expirations, and economic reports. Thanks for your interest in XPRESSTRADE, and we hope that you find your Trading Calendar to be of value. While you're here, take a few minutes to browse our website, and see why we're one of the leaders in online futures and forex trading! Click Here to Request Your Calendar Today!

Wednesday, January 04, 2006

Something's brewing in Coffee!

Once again, speculators are trying to rally the Coffee market, sending prices to 8-week highs. Commodity funds have recently turned long the market, joining roasters in bidding-up prices. Buy-stops were triggered once the March contract broke the 109.00 price level,as shorts covered their losing positions. Read Now....

Dollar Slides and the Loonie Surges......

The Dollar remained soft during today's relatively quiet trade. Though the moves were less than yesterday's, the themes remain rate concerns and high crude prices; both of which are weighing the greenback down. The big mover, logically, was the Canadian Dollar, which surged on both natural gas worries in Europe and rising oil prices.

There Is No Stopping Copper Now!

No stopping Copper! March copper made a new contract high today, as a strike at the Codelco mine in Chile, has over 1000 workers walking off the job. This comes at a time when base metal prices are at all-time highs. Also contributing to gains was word of a 6.7 magnitude earthquake in the Gulf of California, early this morning. Read More....

OneChicago Volume Increases 188% in 2005, Up 260% In December

CHICAGO, IL – Jan. 3, 2006 – OneChicago, LLC today reported that 5,528,046 security futures contracts traded at the Exchange in 2005, 188% more than 2004. The average daily volume (ADV) for the year was 21,937. Open interest hit a record 1.6 million contracts December 15. Read More....

Did you know XPRESSTRADE offers trading of more than 150 different Single Stock Futures? Find out more by Clicking Here!

The Dollar, The Franc and Natural Gas.....

The year has begun with the Dollar under some pressure from traders speculating that the Euro may retake some of its 2005 losses. Yesterday's data did, indeed, support such a view (at least in terms of manufacturing expectations), as the figures for all major European countries, including the UK, were above consensus estimates, and the U.S. figure was below what analysts had expected. Read More....

Want To See How Our Futures Platform Works? Join Us Today At Noon CST

Though we expect you'll find our website to be refreshingly intuitive and user-friendly, you might still like to join us for a live, online system walk-through. This is a new service that we've decided to offer, and we think it'll be a great way for both new and existing clients to learn about everything our browser-based trading platform has to offer.

These training sessions will be held twice weekly and take place online, in a virtual classroom. If you're interested in participating, you'll simply log into the training site at one of the designated times, and you can watch in real-time as a member of the XPRESSTRADE customer service team moves through the website, pointing out all the tools at your disposal. You can even listen to the instructor over your computer speakers.

At the end of each online group training session, you’ll have the opportunity to post questions for the instructor. Not only will you receive direct answers to your questions, but you might very well find that answers to questions from your fellow traders will be helpful to you, too. We encourage you to give this new complimentary service a try!

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Tuesday, January 03, 2006

Speculators jump into Bean Oil futures!

Once again, the Soybean complex has awaken, with Soybean Oil leading the charge today. Commodity funds, who have recently been seen buying grain futures, were still net-short Bean Oil at the end of 2005. That may have changed today with prices posting triple-digit gains. Read More....

CME Posts Sixth Consecutive Record Year as Total Volume Soars to More Than 1 Billion Contracts

CHICAGO, Jan. 3, 2006 – CME, the world’s largest and most diverse futures exchange, posted total 2005 annual volume of 1.05 billion contracts as it achieved double-digit volume gains for the sixth consecutive year. CME total average daily volume in 2005 was nearly 4.2 million contracts, up 34 percent from 2004.Read More....

CBOT 2005 Volume Surpasses 674 Million Contracts and Marks Fourth Consecutive Year

CHICAGO, January 3, 2006 — The Chicago Board of Trade (CBOT®) today announced the Exchange achieved the highest yearly total volume recorded in its history, with more than 674 million contracts traded in 2005. Total annual volume rose 12.4 percent over the prior year, making 2005 the fourth consecutive record-breaking year for the CBOT. The Exchange’s average daily volume (ADV) also increased 12.9 percent to 2.7 million contracts from 2.4 million contracts reported in 2004, setting a new record for the year. Read More....

Corn Futures Start The New Year With A POP!

Corn futures start the new year with a pop! For the past several months, the Corn futures market was as exciting as watching grass grow, but it looks like that is about to change. Corn futures ended the year on an up-note, closing the year at a 7-week high. Commodity funds have jumped back into the market, with hopes that buy-only index funds will bid-up prices soon. Read More....

A Rocky Road For The NZD/USD

As the new trading year gets underway in North American, the Dollar is soft across the board on the back of strong manufacturing PMI numbers in Europe, as well as above average French GDP numbers. European PMI numbers were solid across the continent -- Germany 53.6 (x-52.7); France 52.2 (x-51.8); Italy 54.1 (x-53.1); Eurozone 53.6 (x-52.8); UK 51.1 (x-51.0). Read More....