Commodity Blog

Archive for June, 2010

Cotton and soybeans dropped today on signs of increasing output. U.S. farmers planted cotton on the area, 19 percent wider compared to the previous year. The soybeans seeded area will be 1.8 percent wider compared to the last year and will reach the all-time record, while combine output of Brazil and Argentina will grow by 37 percent. December delivery for cotton slid $0.0051 (0.7 percent) to $0.7762 per pound as of 9:50 on ICE. November futures for soybean delivery slipped $00325 (0.4 percent) to $9.0875 per bushel by 11:03 on CBoT.

Raw sugar climbed to the weekly high level on forecast that output in India would be reduced by adverse weather. Production in Thailand may also fall; it expected to decline by 13 percent. October delivery for raw sugar rose $0.0041 (2.7 percent) to $0.1569 per pound as of 11:50 on ICE Futures U.S.

Copper rebounded today as the concern for the global recovery eased after the report about the increased manufacturing in the U.S. Chicago PMI index value of 59.1 in June indicated an increase, as figure above 50 signals about growth. September futures for copper delivery gained $0.0165 (0.6 percent) to $2.947 per pound at 12:20 on COMEX.

Latest commodity prices (ICE, NYMEX, CME) as of 16:27 GMT:

Oil (Brent) — $75.14
Gold — $1,240.78
Silver — $18.54
Palladium — $443.00
Platinum — $1,533.17
Copper — $6,512.00
Aluminum — $1.976.00
Nickel — $19,650.00
Zinc — $1,780.00
Cocoa — $2,902.00
Sugar — $17.52
Corn — $351.00
Soybean — $951.50

Copper dropped today on concerns that economic growth in China may slow. With Europe’s troubles and signs of slowdown of the U.S. economic growth, China remained the main source of optimism on markets. And even it might go away. September futures for copper delivery slid $0.159 (5.1 percent) to $2.9305 per pound on COMEX.

Concern for China’s economic growth also hit sugar futures, which also fell on a notion that the prices rallied too much. The supply picture is mixed, as harvest in India expected to beat estimation, but adverse weather in Thailand can curb output. October delivery for raw sugar dropped $0.0054 (3.4 percent) to $0.1528 per pound on ICE.

Wheat futures slid today as harvest in the U.S. accelerated due to favorable weather. The prices also fell as speculative investors increased their short positions. September futures for wheat delivery went down $0.0625 (1.3 percent) to $4.5875 per bushel by 9:57 on CBoT.

Latest commodity prices (ICE, NYMEX, CME) as of 18:59 GMT:

Oil (Brent) — $75.35
Gold — $1,240.90
Silver — $18.54
Palladium — $450.50
Platinum — $1,543.59
Copper — $6,475.00
Aluminum — $1.948.00
Nickel — $19,210.00
Zinc — $1,768.00
Cocoa — $2,921.00
Sugar — $17.72
Corn — $325.00
Soybean — $948.75

Wheat futures dropped today as favorable weather may help U.S. farmers to accelerate harvest. Demand for U.S. wheat also fell because importers turned to supplies from the Black Seas region. September futures for wheat delivery slid $0.06 (1.3 percent) to $4.65 a bushel on CBoT.

Soybeans gained today, erasing the previous losses, on speculation that excessive precipitation in the U.S. would reduce the area, in which the crop would be planted. Soybean planting probably may drop from the forecast 78.1 million to 76.5 million acres. November futures for soybean delivery slipped $0.06 (0.7 percent) to $9.18 per bushel as of 1:12 p.m. the Chicago Board of Trade.

Hog futures slid today on speculation that increasing profits would encourage U.S. farmers to reduce cuts of hog herd. According to analysts, producers aren’t expanding for now, yet they may be planning to do that in future. August futures for hog settlement subtracted $0.0175 (2.1 percent) to $0.82175 per pound on CME.

Latest commodity prices (ICE, NYMEX, CME) as of 21:00 GMT:

Oil (Brent) — $77.63
Gold — $1,238.68
Silver — $18.74
Palladium — $466.00
Platinum — $1,566.79
Copper — $6,812.00
Aluminum — $2.014.00
Nickel — $20,417.00
Zinc — $1,862.00
Cocoa — $3,108.00
Sugar — $17.00
Corn — $332.50
Soybean — $961.00

The technical analysis, that includes the indicators’ data and major pivot points for Brent Oil, Gold, Silver and Copper as traded on spot market as of June 26th 2010:

Sugar futures were shifting from losses and gains, after jumping to the highest level in nine weeks in New York on speculation that demand would remain at the present level. Complicated credit situation and high prices depleted sugar inventories last year, prompting consumers to restock their supplies and supporting demand. October delivery for raw sugar slid $0.0001 (0.1 percent) to $0.1618 per pound on ICE Futures U.S. October futures for white-sugar delivery added $10.60 (2.3 percent) to $478.70 per metric ton on the Liffe exchange.

Hog and cattle futures gained on prospect for resuming imports of U.S. chicken to Russia would cause the U.S. meat supplies to dwindle. Russia, previously the biggest consumer of U.S. chicken, has agreed to lift a five-month-old ban on the meat after yesterday’s meeting of U.S. and Russian presidents. August futures for hog settlement advanced $0.00225 (0.3 percent) to $0.83475 per pound by 10:57 on CME. August futures for cattle delivery rose $0.0025 (0.3 percent) to $0.894 per pound.

Cotton prices rose on outlook for increasing demand from mills in the U.S., the biggest exporter of the fiber. U.S. mills used the fiber at an adjusted annual rate of 3.582 million bales in May, compared to the April rate of 3.48 million and up 7.6 percent compared to the previous year. December delivery for cotton gained $0.0028 (0.4 percent) to $0.79 per pound at 10:10 a.m. on ICE.

Latest commodity prices (ICE, NYMEX, CME) as of 16:40 GMT:

Oil (Brent) — $78.06
Gold — $1,255.78
Silver — $19.07
Palladium — $475.00
Platinum — $1,563.70
Copper — $6,848.00
Aluminum — $2.004.00
Nickel — $19,875.00
Zinc — $1,879.00
Cocoa — $3,089.00
Sugar — $17.21
Corn — $344.25
Soybean — $960.50

Sugar prices went up today in New York for the first time in three days on prediction that harvest may be hurt by low precipitation in India, sugar’s biggest consumer. In the week that ended June 23 India’s monsoon, the main source of nation’s irrigation, was 21 percent below average. October delivery for raw sugar rose $0.0038 (2.4 percent) to $0.1619 per pound on ICE.

Wheat futures rose today for the first time in a week also on outlook for adverse weather. As much as 12.5 million acres of grain were prevented from being planted in Canada because of rainfall. The output from the U.S. and Russia may also be lower because of adverse weather. September futures for wheat delivery gained $0.0175 (0.4 percent) to $4.775 per bushel on CBoT.

Copper prices gained today as government reports signaled that demand may be higher then economic indicators previously suggested. Cores durable goods orders rose by 0.9 percent in May and unemployment claims dropped from 476,000 to 457,000 last week, suggesting that the U.S. economic recovery strengthens. On the negative side we have unexpected plunge of new home sales from 446,000 to 300,000, which may curb gains of the metal prices. September futures for copper delivery added $0.0695 (2.4 percent) to $3.024 per pound on COMEX.