A sea of red this morning for commodities

A sea of red this morning for commodities against a backdrop of a slowdown from China. Several reports released overnight showed slowing exports, shrinking lending and less consumption. In one report Copper stocks in China were significantly higher than originally expected at the end of 2010. The knee jerk reaction from the market has caused a sell off meanwhile cooler heads in the copper market claim the differential is not a major factor. Gold is off more on profit taking than any other reason and still remains technically in bullish territory. Most likely we will see a recovery sooner than later on the price erosion this negative news has caused on the commodity sector. Yesterday saw the passing of free trade agreements with Colombia, Korea and Panama. I believe a very positive opportunity for all parties as this will create jobs on growing exports to these regions. Today’s US numbers came close to expectations and with no surprises and all things being equal we should see recovery for the precious metals group from this morning’s drop.

10/13/2011 10:15	Last	%Change	Low	High
Au- Dec	1,659.70	(1.36)	1,654.30	1,686.10
Pt-Jan	1,528.70	(1.65)	1,526.80	1,557.10
Pd-Dec	592.00	(3.12)	590.00	618.00
Ag-Dec	31.670	(3.410)	31.480	32.800
EFPs	Au 1.40/2	Pt 2.50/6.50	Pd 0/4	Ag -1/5
London	AM	PM	Minor	PGMs
Au	1,673.00	1,656.00	Rh	1630
Pt	1,541.00	1,535.00	Ru	150
Pd	605.00	604.00	Ir	1100
Ag	31.97	DJI	11,423.00	(95.85)
FX	Last	%Change	Low	High
EUR	1.3695	(0.66)	1.3685	1.3826
JPY	76.84	(0.53)	76.64	77.29
GBP	1.5701	(0.30)	1.5662	1.5762
CHF	0.9032	0.92	0.8924	0.9040
Others	Last	%Change	Low	High
Crude- Dec	83.850	(2.240)	85.610	83.430
Copper-Dec	3.2885	(3.000)	3.320	3.287
*THESE PRICES ARE FOR INDICATION ONLY CALL FOR QUOTES

Date	Time	Statistic	For	Actual	Forecast	Expects	Prior	Revised
13-Oct	8:30 AM	Initial Claims	8-Oct	404K	400K	406K	405K	401K
13-Oct	8:30 AM	Continuing Claims	1-Oct	3670K	3700K	3700K	3725K	3700K
13-Oct	8:30 AM	Trade Balance	Aug	-$45.6B	-$45.5B	-$46.1B	-$45.6B	-$44.8B
13-Oct	11:00 AM	Crude Inventories	8-Oct	-	NA	NA	-4.679M	-