Sunday Night Outlook, 12-16-07

There is not a lot of market-moving news to discuss.

Some will be encouraged by Friday's price action, but some of the strength was due to late-session short-chasing before the weekend and general building of risk premium into a weekend during heightened South American weather interest.

South American weather forecasts tonight offer limited precip during the next 5 days, which seems largely in line with Friday's expectations. However, the 6-10 day window has some impressive moisture expectations and is greatly improved from Friday's forecast.

I don't see outside markets offering much influence.

Let's look for easier values across the floor. Technical indicators don't require much weakness to quickly spur increased selling pressures as the week evolves, so if the South American weather forecast can maintain some tone of diminished fear and increased optimism, we seem poised for a correction period to unfold.

Duane