Commodity Blog

Archive for February 18th, 2010

Corn and wheat slid today on speculation that demand is shifting from U.S. grain. Lower quality of U.S. corn crop may result in business shifting to supplies from competing nations. May futures for corn delivery fell $0.0225 (0.6 percent) to $3.695 per bushel by 10:26 on the Chicago Board of Trade.

Cotton price reached the highest level since July 2008 on signs that the dollar will decline, increasing the demand for commodities as a hedge against inflation. The dollar dropped 0.2 percent versus a basket of six major currencies before rebounding. May futures for cotton delivery advanced $0.0037 (0.5 percent) to $0.7648 per pound as of 11:28 on ICE.

White sugar declined in London today as technicals signal that further drops may lie ahead. Prices also slid as the dollar rebounded, curbing appeal of commodities priced in U.S. currency. May delivery for white sugar slipped $10 (1.4 percent) to $704 per metric ton on the Liffe exchange.

Latest commodity prices (ICE, NYMEX, CME) as of 17:03 GMT:

Oil (Brent) — $77.06
Gold — $1,117.60
Silver — $16.07
Palladium — $433.50
Platinum — $1,518.13
Copper — $7,260.00
Aluminum — $2,118.00
Nickel — $20,413.00
Zinc — $2,298.00
Cocoa — $3.071.00
Sugar — $26.23
Corn — $357.00
Soybean — $947.00

Wheat futures slid on speculation that the stronger dollar and growing global stockpiles will cut demand for the U.S. grain. U.S. government forecast that world wheat inventories will rise 19 percent to 195.9 million metric tons in the year ending May 31st, the record level since 2002. May futures for wheat delivery slid $0.075 (1.4 percent) to $5.12 per bushel by 10:25 on the Chicago Board of Trade.

Crude oil fluctuated as the dollar rebounded versus the euro, equities rose more than predicted and on speculation about the global economic recovery. U.S. Energy Department reported that U.S. supplies of crude oil rose 1.73 million barrels last week. March delivery for crude oil dropped $0.18 to $76.83 per barrel as of 10:53 on NYMEX.

Cattle futures tumbled from a 15-month record as U.S. wholesale prices for the meat reached a highest in four-weeks, signaling that retailers may slow purchases of beef. Wholesale choice beef rose 0.6 percent to $1.4486 per pound, the highest price since January 20th, as cold weather in the U.S. reduced cattle-weight gains and diminished beef supplies. April delivery for cattle futures subtracted $0.002 to $0.91975 per pound at 11:23 on CME.