Markets To Watch

Crude Oil: December Crude Oil contracts are trading slightly higher, as trading remains range-bound. Prices are climbing this morning, after OPEC’s president issued another warning of possible reductions in output. Also lending support to prices is reaction to yesterday’s inventory data, which showed a decline in gasoline inventory for the fifth straight week. Supplies of distillate fuels fell 3.57 million barrels, and gasoline supplies fell 3.78 million barrels. U.S. crude inventories rose 1.2 million barrels to 336 million last week. December Crude Oil futures are currently trading up 25 cents at $59.01 a barrel.

Soybeans: January Soybeans ended the overnight session with modest gains. This morning’s gains have taken back much of yesterday’s decline. Yesterday, Soybeans ended a choppy day of trading by giving back early gains to finish in the red. Profit-taking was credited with the turnaround. January Soybeans at the CBOT ended the day down 7 ½ cents, to settle at $663.75 a bushel. Higher trade in China led the overnight gains. Despite the overnight strength, traders should remain wary of closing at the low end of a 15 ¾ cent range yesterday. January Soybeans on the eCBOT ended the overnight session up 5 ¼ cents at $669.00 a bushel.

S&P: December S&P 500 futures are trading higher in early trading, after consumer prices dropped for the second straight month. Total CPI fell 0.5% in October (consensus –0.3%), due to falling energy prices. The closely-watched core rate rose a lower-than-expected 0.1% (consensus 0.2%). This morning’s numbers give some validation to yesterday’s PPI data, which also showed tame inflation readings. These numbers help relieve concerns from yesterday’s FOMC minutes, in which nearly every Fed official views the current rates of core inflation as “uncomfortably high”. December S&P 500 futures are trading up 4.80 at 1406.30 in pre-market trading.