Friday December options expiration lead to 51,266 contracts in call options and 12,934 contracts in put options exercised. Today's session was active with an estimated 17,196 contracts traded on the floor and 40,095 contracts traded electronically.
ICE opened around unchanged, but overnight weaker grains, crude oil and metal prices together with stronger dollar index drove the open outcry to open some 100 points lower.
The low of the day at 63 cents was locked around mid session and market then remained trading at the lower range for the rest of the session. Trade buying was seen at the lower levels during the session.
Open interest was decreased by nearly 6,000 contracts Friday with December contract reduced by 13,811 to 81,602 contracts remaining.
This figure is impressive considering there are only 2 weeks left before the first notice day, and market is closed for 2 days prior due to the Thanksgiving holiday. The stock market looks like it is struggling to find good buying momentum with so much concern about consumer spending during the critical holiday season coming up soon.
Technically, we broke the 50 day moving average in Z'07 but found support in H'08. We over laid the charts so you can see the difference in the technicals. This break today has pushed the 9 day moving average closer to crossing the 50 day in Z'07 and sparking more technical sell signals.
Cotton has been getting quite a bit of support from the weak dollar, but the equity markets really failed last week and may continue to feel pressure from a struggling 4th quarter and gloomy outlook for 2008 growth.
The weak dollar bounced back a bit today and immediately took profits away from commodities which have been looking vulnerable for a pull back and may trigger some technical sell stops.
marketing@alchempro.com
