Markets To Watch

Crude Oil: November Crude Oil contracts are trading higher in pre-market trading, in the wake of the long-awaited OPEC meeting. OPEC announced that it would cut output by a greater-than-expected 1.2 million barrels per day. The cuts are scheduled to go into effect on November 1. Some members of the cartel have even suggested that they are willing to cut more to help support prices. There is some doubt, however, that some of the members will actually go through with the cuts. November Crude Oil futures are currently trading up 30 cents at $58.80 a barrel.

Wheat: December Wheat futures traded higher in the overnight session. The overnight gains took back some of yesterday’s late-day sell-off. December Wheat futures still managed to end the day in positive territory with a 4 cent gain, but came 16 cents off the highs before the closing bell. The overnight strength came after Egypt announced it would tender for 55,000 60,000 tonnes of U.S., Canadian, Australian, and/or German Wheat. December Wheat futures on the eCBOT gained 7 cents, to end the overnight session at $520.00 a bushel.

S&P: December S&P 500 futures are trading lower after disappointing earnings from Caterpillar (CAT). The Dow Jones component not only missed their 3rd quarter earnings, they also gave a disappointing future outlook by noting a slowing U.S. economy. Also contributing to this morning’s weakness is OPEC’s decision to cut production by more than the 1.2 million barrels a day that was expected. This morning’s declines have reversed overnight gains that saw the S&P trade as high as 1376.80 behind strength in the European markets. December S&P 500 futures are trading down 1.30 at 1373.00 in pre-market trading.