Haug & Wigelsworth Commodity Futures Group

The Daily - Comments for March 19th, 2010

Technical Play Of The Day Is Dollar / Canada

The dollar, at C$1.0095 as of this writing, is nearly at that parity with the Canadian dollar that so many observers have been talking of lately. In fact the meaningful technical level on the daily chart Friday will probably in the band between C$1.0018 and C$0.9967. If trades are stopped above C$1.0193 look for an intraday uptrend to C$1.0299. Source: Copyright (c) 2010 Dow Jones Newswires.

CBOT Grain, Soy Futures Mixed Overnight

CBOT grain and soybean futures were mixed in overnight trade. Corn and wheat futures were under pressure from bearish outside markets, with a firmer U.S. dollar providing some psychological weakness, traders said. Soybeans were mixed, with old crop futures up on tight supplies while new crop futures drifted lower on outlooks for higher 2010 production, analysts said. May soybeans were 1 1/4 cents higher at $9.60 3/4, May corn was 2 1/4 cents lower at $3.73 3/4, May wheat was 2 cents lower at $4.87 1/4. Source: Copyright (c) 2010 Dow Jones Newswires.

USDA's Monthly Cattle On Feed Report

Dow Jones’ monthly survey of analysts’ regarding USDA’s monthly Cattle On Feed report indicates that, on average, analysts expect “more of the same” with respect to last year. In fact, the averages this month are VERY similar to those of last month with the only real difference being placements at 98% of last year this month versus only 95.1% of last year in January. Note that these are the pre-report estimates for last month and this month, not the January actual percentage changes. The analysts show the greatest degree of disagreement for the placements category; not too surprising given this year’s weather conditions. The report will be released Friday afternoon at 3:00 p.m. EDT, 2:00 p.m. CDT.

Range of Estimates

Average of

Estimates

On Feed, March 1

Placed in February

Marketed in February

95.7 - 97.3

92.4 - 103.0

100.4 - 103.4

96.8

98.0

101.9

Nymex Gas Slips On Weather, Storage

Natural gas futures continue to slip on mild weather forecasts and ample supplies. "We have moderate weather, ample storage and increasing production efficiencies," says Mike Fitzpatrick, a broker with MF Global. "The data just doesn't leave a lot of room for interpretation." Nymex April gas futures recently traded down -1.7c, or 0.42%, at $4.068/MMBtu. Source: Copyright (c) 2010 Dow Jones Newswires.

ICE Cotton Slips After Touching 2 Week High

ICE cotton futures are modestly weaker after touching two-week highs. May cotton is down 7 points at 82.14 cents a pound, off the 82.68 high. Analysts say cotton is trending back toward two-year highs amid strong demand, tight supplies and bullish technical charts. China's cotton imports in the first two months of 2010 more than tripled from the same period last year, according to the China Cotton Association. The dollar is stronger on continued concerns about Greece's sovereign debt. The CRB Index is slightly lower and CBOT grains were weaker overnight. Cotton futures on China's Zhengzhou exchange settled higher Friday. Source: Copyright (c) 2010 Dow Jones Newswires.

Comex Gold Eases As Dollar Keeps Rising

Gold futures are slightly softer early Friday in response to further gains by the U.S. dollar. Around 9:05 a.m., EDT, lightly traded but nearby March gold fell $3.20, or 0.28%, to $1,124.20 an ounce on the Comex division of the New York Mercantile Exchange. Most-active April slid $3.60, or 0.32%, to $1,123.90. Most-active May silver fell 10.2 cents, or 0.59%, to $17.32. Precious metals have eased in response to a rising dollar and sliding crude oil, said Leonard Kaplan, president of Prospector Asset Management. Still, gold's pullback is modest despite the dollar gains. In fact, on Thursday, the metal rose despite dollar strength on safe-haven buying on uncertainty about whether Germany and other nations will aid Greece or if the country has to turn to the International Monetary Fund. Technically, Kaplan described gold as stuck in a range between $1,105 on the downside and $1,135-$1,140 on the upside and needing to break out in either direction to generate momentum. Source: Copyright (c) 2010 Dow Jones Newswires.

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