Commodity Blog

Commodity Prices - Hogs

Sugar futures gained after Pakistan increased purchases. Other importers may follow Pakistan, increasing demand for the sweetener. May futures for raw-sugar delivery gained $0.0072 (3 percent) to $0.244 per pound on ICE Futures U.S. in New York.

Wheat futures went up as the dollar’s decline boosted appeal of the U.S. commodities. The greenback fell 0.6 percent versus a basket of six major currencies today, supporting commodities. May futures for wheat delivery went up $0.08 (1.6 percent) to $5.1375 per bushel on CBoT.

Hog futures advanced as U.S. pork prices continued to rally, signaling that meat inventories are declining. Increasing U.S. exports may further lower pork supplies, spurring hogs price. April futures for hog settlement rose $0.009 (1.3 percent) to $0.7035 per pound on CME.

Sugar dropped after the dollar gained, cutting appeal of some riskier assets. The greenback gained 0.7 percent versus a basket of six major currencies. The rising dollar puts some commodities under pressure. March futures for raw-sugar delivery slid $0.0014 (0.5 percent) to $0.2762 per pound as of 9:48 on ICE.

Hog futures reached the nine-months high as rising demand for the meat pushed the U.S. wholesale-pork prices to the record in 15 months. Wholesale pork climbed 8.4 percent to $0.7305 per pound yesterday, the highest level since October 2008. Analysts say that historical price patterns show the possibility for wholesale pork to reach $0.75 per pound before going down. April futures for hog settlement added $0.0065 (0.9 percent) to $0.734 per pound by 11:00 on the Chicago Mercantile Exchange.

Cattle futures went up and hogs advanced after the dollar slid, spurring the demand for commodities as an alternative investment. The U.S. currency declined versus a basket of six major currencies. February futures for cattle delivery added $0.00475 (0.6 percent) to $0.85225 per pound as of 10:06 on CME. February futures for hog’s settlement gained $0.004 (0.6 percent) to $0.0642 per pound.

Gold futures may decline as some investors sell after the precious metal reached a record high this year. Analysts think that gold rally is curbed until demand outpaces supply. February delivery for gold futures dropped $0.30 to $1,104.50 per ounce by 10:52 on the New York Mercantile Exchange’s Comex unit.

Gold imports in India, the greatest buyer in the world, may wane in December because demand went down on high prices. Imports by India expected to fall to 30 metric tons, down from 32 metric tons in November. Analysts forecast that “demand will remain low until prices fall”. Bullion for immediate-delivery rose to $1,096.66 by 9:56 in Mumbai.

Analysts predict that retail-food prices in the U.S. will rise about 2 percent this year, curbed by declining production. The outlook for food inflation in 2010 is about 3.5 percent. Beef and veal prices dropped at a rate of 0.5 to 1.5 percent this year. Pork prices fell 1.5 to 2.5 percent. Prices for fruits and vegetables slid 1.5 to 2.5 percent this year.

Hog futures gained for the first time in a week on speculation that a winter storm in the U.S. may prevent delivery of animals to slaughterhouses. A storm may cut shipments of hogs from producers, boosting prices on higher demand for supplies. February futures for hog settlement gained $0.00925 (1.4 percent) to $0.6605 per pound by 9:53 on the Chicago Mercantile Exchange.

Sugar futures advanced as the dollar declined, spurring demand for some commodities as an alternative investment. Sugar also rose on forecast that harvest in Brazil, the largest producer, will be lower because of excess rain. March futures for raw-sugar delivery added $0.0016 (0.7 percent) to $0.2238 per pound at 10:26 on ICE.

Coffee futures rose for a second time in a week as the weakening dollar cut appeal of riskier assets such as commodities. The U.S. currency fell as much as 0.6 percent against the basket of six major currencies. March futures for Arabica-coffee delivery rose $0.019 (1.3 percent) to $1.458 per pound as of 11:11 on ICE.

Copper tumbled on speculation that the global economic recovery may become slower. Imports of the metal in China, the largest consumer of copper in the world, slid in October for the third time in four months. March delivery for copper slid $0.0065 to $3.252 per pound by 11:39 on the New York Mercantile Exchange’s Comex unit.

Soybeans gained for the first time in three sessions on speculation that global demand for the U.S. oilseed and animal feed increased. Sales grew 58 percent to 27.8 million metric tons since September 1st. January futures for soybean delivery gained $0.0675 (0.7 percent) to $10.4075 per bushel as of 11:52 on CBT.

Hog futures climbed to the weekly high on speculation that a rising prices for U.S. wholesale-pork signaled increasing export demand. Exports are rising as the dollar falls and as countries lift bans on U.S. pork that were put after the swine flu outbreak. February futures for hog settlement climbed $0.003 (0.5 percent) to $0.6695 per pound at 12:21 on CME.

Hog futures reached the record level in six months as increasing wholesale pork prices caused speculation about rising demand for the meat. Coming Thanksgiving causes increase in demand for turkey and ham, which is positive for hogs prices. February futures for hog settlement added $0.0165 (2.5 percent) to $0.6765 per pound by 9:57 on the Chicago Mercantile Exchange.

Corn advanced on expectation that a declining dollar will boost demand for commodities as a hedge against inflation. Traders tend to invest in commodities when greenback falls to preserve their purchasing power. March futures for corn delivery advanced $0.1475 (3.8 percent) to $4.0675 per bushel as of 11:51 on CBT.

Hog futures jumped to a five-month high as declining U.S. pork inventories signaled that global demand for the meat may be growing. Despite extensive hog slaughter demand may rise occasionally and supplies may be not enough to meet it, analysts say. Pork inventories declined 1.5 percent from the previous year to 520.13 million pounds. February futures for hog settlement climbed $0.0165 (2.6 percent) to $0.66025 per pound by 11:11 on the Chicago Mercantile Exchange.

Wheat gained on expectation that a declining dollar will increase the demand for commodities as an inflation hedge and boost U.S. exports. Another reason for the rising price is concern that U.S. farmers will plant fewer winter wheat as rainfalls delayed the corn and soybeans harvests, lowering the amount of land available for wheat. March futures for wheat delivery gained $0.0975 (1.7 percent) to $5.905 per bushel at 11:46 on CBT.

Cotton reached a 16-month high after the weaker dollar spurred demand for the commodity. The declining dollar is pushing down the cost to overseas buyers for U.S. commodities. Holders of cotton are unwilling to deliver supplies against the December futures contract. March futures for cotton delivery added $0.0066 (0.9 percent) to $0.747 per pound as of 12:51 on ICE.

Gold reached the highest price in more than a week as the weakening dollar increases the attractiveness of the precious metal as an inflation hedge. The dollar declined 0.5 percent against a basket of six major currencies. “The fundamentals are clearly bullish for gold,” said Chip Hanlon, the president of Delta Global Advisors. December futures for gold delivery jumped $13.50 (1.3 percent) to $1,017.80 per ounce on the New York Mercantile Exchange’s Comex division.

Corn gained on speculation that cold weather in the U.S. Midwest may damage harvest. About 6 percent of the corn was harvested by September 27th. Corn prices declined earlier on expectations of record crop. December futures for corn delivery gained $0.08 (2.4 percent) to $3.415 per bushel on CBoT.

Hogs tumbled to a five-week low as increasing production and decreasing prices indicating that supplies may exceed demand. More than 2.3 million hogs was slaughtered a week for three straight weeks. Average hog weight reached 92 kilograms on October 1st, up 1.5 percent from a previous year, signaling higher pork output. December futures for hog settlement slid $0.0095 (2 percent) to $0.476 per pound on CME.

White sugar dropped to two-week low in London as prices tumbled in New York yesterday, signaling slowing demand. Prices also fell after the dollar rebounded, decreasing the attractiveness of commodities as a hedge against inflation. December delivery for white sugar dropped $13.10 (2.2 percent) to $571.40 per ton on the Liffe exchange.

Corn futures gained for a third day because of forecast that frost, expected next week in some parts of the northern Midwest, may reduce the size and quality of the crop in the U.S., the largest grower and exporter in the world. Crop loss may reach 13.2 billion bushels. December futures for corn delivery gained $0.0575 (1.7 percent) to $3.36 per bushel as of 11:37 on CBoT.

Hog futures slumped as U.S. pork prices declined on speculation that meat production may not be decreased enough to cope with dropping demand. Combination of low exports and domestic demand makes the pork market weak. The swine flu also discouraged people from buying pork. December settlement for hog futures slumped $0.0045 (0.9 percent) to $0.496 per pound by 12:22 on the Chicago Mercantile Exchange.