Markets To Watch

Crude Oil: December Crude Oil contracts are trading slightly higher, as trading remains range-bound. Traders are waiting for additional proof that OPEC production cuts are actually working to reduce heavy supplies. While the cuts have not been enough to reverse recent price declines, they have been enough to keep Crude Oil futures trading near $60 a barrel. Traders seem to be patiently waiting for inventory data due out tomorrow morning. December Crude Oil futures are currently trading up 24 cents at $58.82 a barrel.

Corn: December Corn futures ended the overnight relatively flat. Trade remains quiet after an uneventful session on Monday. Monday saw Corn futures trade higher in the overnight session, only to give way to speculative selling during the day. With no news out to support the overnight advances, the bulls had no momentum to carry over into the day session. December Corn on the CBOT ended Monday slightly lower, settling down 0.75 at $342.50 a bushel. News remained light in the overnight session, keeping trading muted. December Corn on the eCBOT ended the overnight session up 0.25 at $342.75 a bushel.

S&P: December S&P 500 futures are trading higher in early trading. Futures are up on PPI data and better-than-expected earnings from Wal-Mart Stores Inc (WMT). Total PPI fell a much larger-than-expected 1.6% (consensus –0.5%). October’s decline matched the largest drop on record set in October 2001. The closely watched core PPI came in at –0.9% (consensus 0.1%). The unexpected drop in the core rate suggests inflation at the wholesale level remains contained. Several Fed Bank presidents are scheduled to speak this afternoon, two of them at noon, and one more at 3:00 PM CST. This morning’s news has sparked the index closer to the 1400 mark. December S&P 500 futures are trading up 5.30 at 1393.30 in pre-market trading.