Natural Gas Recovering After Yesterday’s Sell-Off
After a modest sell-off sending the spot Nat Gas price back below the key $4/mmbtu level prices are recovering upward slightly so far this morning.
— CMEGroup
How Snow Helps Both Winter And Spring Wheat
Though low moisture persists throughout most of the wheat growing areas in the Plains, some of the late winter snows came just in time.
— CMEGroup
A Return to Normalcy Ahead for Brent-WTI Spread
Brent crude’s price premium to the West Texas Intermediate benchmark, already trading near the lowest levels since early 2011, may shrink even further as more oil from the central U.S. reaches the Gulf Coast.
— CMEGroup
Time to Worry About Return of Inflation in U.S.?
The Federal Reserve and other major central banks in recent years struck the same liberally stimulative policy stance – zero short-term interest rates, combined with massive balance-sheet expansion – yet no major country sees any signs of inflation.
— CMEGroup
Banks Seek to Minimize Collateral Damage
Global regulations and changing market dynamics are mandating new and complex requirements for the use of collateral, which are forcing both sell-side and buy-side firms to reevaluate their need for and use of collateral.
— CMEGroup
Dodd-Frank and Emir Rattle Derivatives Users
Financial institutions are gauging the impact of increased capital requirements on certain business lines, with the introduction of central clearing expected to result in lower margins, increased collateral requirements and a general increase in the cost of doing business in areas such as OTC derivatives.
The majority of derivatives end-users facing compliance requirements from Dodd-Frank and Emir are underprepared to meet key obligations for one or both sets of rules, according to a recent survey from Chatham Financial.
Among a sampling of more than 150 companies, 60 percent of respondents who face regulatory requirements from Dodd-Frank indicated that they are not yet prepared for compliance, with nearly three-quarters (74 percent) of end-users facing EMIR compliance stating that they were not fully prepared….
— CMEGroup
Natural Gas Inventory Report Bearish
For the second week in a row the weekly Nat Gas injection came in greater than the market consensus as well as greater than both last year and the five year average for the same week.
— CMEGroup
U.S. Crude Output Seen Rising to 27-Year High
U.S. crude production this year and next will be greater than previously forecast, on track for the highest level since 1987 amid an ongoing oil boom in so-called tight formations in Texas and other areas, according to the Energy Information Administration.
— CMEGroup
Jobs Report Shows U.S. Labor Market on Upswing
The U.S. economy added 165,000 net new jobs in April, the Bureau of Labor Statistics reported May 3, stronger than most observers expected.
— CMEGroup
Oil Trading Higher On Increased Tensions In Middle East
Most risk asset markets headed higher on Friday after what appeared to be a mostly positive US nonfarm payroll data point. The US Labor Department revised upward the last several months of data while reporting a net jobs gain of 165,000 of the month of April.
— CMEGroup
