Central Valley Cooperative

Energy – higher and uncertain – dollar up – equities mixed – EU, North Korea, U.S. all influencing news. The energy complex trade is mixed and strengthening as the dollar remains steady to easier. North Korea Leader Kim Jong Il died Monday, creating new threats of instability in the region as possibly his youngest of 3 sons, Kim Jong Eun, may inherit the leadership role and potentially further nuclear threats to the region. North Korea also fired test missiles into the East Sea between Japan and the North Korea. The potential of an Iranian oil embargo continue to increase as the U.S., European allies, and key Arab nations discuss how to maintain a stable supply. The Senate is pressuring Washington to move ahead with the Keystone XL Pipeline moving Canadian Oil Sands to Gulf oil refiners with the extension of a two month payroll tax bill extension. We are quiet for economic news. Political news never ends with EU and U.S. politicians adding plenty of drama daily. NYMEX January crude oil expires tomorrow. Thinly traded markets add plenty of volatility and will remain on edge. The warm weather is simply amazing and bearish to the heating fuels. We could close in either direction today.