Commodity Blog

Commodity Prices – Hogs

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.

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.

Coffee slipped today on forecasts about high output in Brazil. Analysts think that the previous high prices haven’t reflected the supply and demand balance and the correction was expected. September delivery for Arabica-coffee fell $0.008 (0.5 percent) to $1.60 per pound by 8:32 on ICE Futures U.S.

Wheat declined today for the third consecutive session as hot weather in the U.S. made fields dry enough for harvest. U.S. winter crop harvest was completed at 17 percent as of June 20th, up from 9 percent the week before. September futures for wheat delivery slid $0.04 (0.8 percent) to $4.7325 per bushel by 10:07 on CBoT.

Hog and cattle futures gained today as prices for wholesale-meat rose with expectations of increased demand in the U.S. as summer grilling started. Demand should increase with the coming of the U.S. Independence Day holiday on July 4, encouraging grocers to increase their stockpiles. August futures for hog settlement rose $0.00325 (0.4 percent) to $0.84675 per pound as of 10:11 on CME.

Copper gained today for the sixth successive session as the dollar weakened, boosting demand for commodities. The U.S. dollar dropped as much as 0.7 percent versus the basket of six major currencies. September futures for copper delivery gained $0.0115 (0.4 percent) to $3.024 per pound on COMEX.

Cattle and hogs advanced today on signs that the demand will rise. Rising equities and falling dollar also added helped the prices. August futures for cattle delivery advanced $0.00475 (0.5 percent) to $0.886 per pound on CME.

Sugar declined today on speculation that the prices will go down. Concerns arose among trader that the sugar rally was overdone and the prices won’t be held on the current level. October delivery for raw sugar slid $0.0004 (0.3 percent) to $0.1595 per pound on ICE.

Hog and cattle futures advanced on signs of the expanding global economic recovery, which may increase demand for U.S. meat. China’s exports jumped 50 percent from the last year, hinting that pace of the global recovery is accelerating. The weaker dollar also helped U.S. meat exports, making them cheaper, and thus more attractive, to oversees buyers. July futures for hog settlement rose $0.0075 (1 percent) to $0.7895 per pound by 10:05 on CME. August futures for cattle delivery gained $0.00525 (0.6 percent) to $0.8835 per pound.

Cocoa futures gained for the third consecutive day in New York amid concerns that the viral disease may hurt the crops, diminishing output in Ivory Coast, the biggest grower in the world. The only way for farmers to prevent spreading of swollen shoot, which is spread by insects and usually kills infected plants within two years, is by uprooting and burning infected trees. Global output will trail demand by 69,000 metric tons in the year ending September 30th. July delivery for cocoa advanced $13 (0.4 percent) to $2,994 per metric ton as of 10:16 on ICE Futures.

Corn, soybeans and wheat declined after the nonfarm payrolls showed the lower number of new employees hired than was expected, causing concern that demand for the crops would fall. The nonfarm payroll employment grew by 431,000 in May, compared with the estimated increase of 521,000. July futures for corn delivery dropped $0.04 (1.1 percent) to $3.455 per bushel as of 10:05 on the Chicago Board of Trade. July futures for soybean delivery went down $0.1175 (1.2 percent) to $9.4325 per bushel on CBoT. July futures for wheat delivery subtracted $0.0225 (0.5 percent) to $4.395.

Sugar rose on speculation that buyers will increase purchases to restock their inventories, which waned after two year of the global deficit. India, the largest sugar buyer in the world, may import 1 million tons before the end of September. July delivery for raw sugar rose $0.007 (5 percent) to $0.1469 per pound at 10:15 on ICE Futures U.S.

Hog and cattle futures slipped as the stronger dollar caused concern that demand for U.S. pork and beef will decline. The dollar gained to the highest level in 14 months against the basket of six major currencies, making U.S. exports more expensive for oversees buyers. July futures for hog settlement slid $0.01475 (1.8 percent) to $0.8015 per pound by 11:53 on the Chicago Mercantile Exchange. August futures for cattle delivery fell $0.0125 (1.4 percent) to $0.88875 per pound.

Hog futures slipped on anticipation of U.S. pork exports’ decline, caused by the dollar’s rally. The dollar reached almost the highest level in four years, making European pork cheaper, which may encourage importers to turn from U.S. pork in favor of European supplies. July futures for hog settlement slipped $0.002 (0.2 percent) to $0.8255 per pound as of 10:00 on CME.

Soybeans gained today amid concerns that excessive precipitation will delay planting and diminish the yield. The amount of rain, received by some fields from Kansas to Michigan in the previous month, was more than twice above the normal quantity. The planting in the U.S. was completed by 74 percent on May 30th, compared with the average 75 percent in the past five years. July futures for soybean delivery gained $0.015 (0.2 percent) to $9.335 per bushel by 10:35 on the Chicago Board of Trade.

Cattle and hogs declined on concerns that global demand for U.S. beef and pork will wane after the dollar rose and equities fell. The global economic recovery is slowed by the EU crisis, making prospect for beef and pork demand less certain. August futures for cattle delivery subtracted $0.01175 (1.3 percent) to $0.89025 per pound by 9:40 on the Chicago Mercantile Exchange.

Wheat also felt the impact of the European troubles, tumbling to the lowest price in seven months. Shadow of the European debt crisis looms over markets, curbing demand for commodities. July futures for wheat delivery slid $0.0625 (1.3 percent) to $4.6125 per bushel as of 10:02 on CBoT.

Another victim of the sovereign-debt crisis in the European Union was copper, which fell today. Economists think that the industrial metal shouldn’t fall further and will be supported by demand from China. Three-month futures for copper fell 1.7 percent to $6,794 a ton at 12:07 on the LME.

Cotton gained today on speculation that an unfavorable weather in China will decrease supplies of the fiber. Prices also rose after the dollar fell, increasing demand for some raw materials. July delivery for cotton gained $0.01 (1.2 percent) to $0.822 per pound by 9:49 on ICE Futures U.S. in New York.

Cattle advanced, while hogs fluctuated, boosted by the weaker dollar and by prospect for higher demand. Speculation arose that recent decline of futures because of concern about the stronger dollar was overdone. Prices may also climb as Memorial Day draws near, increasing demand for meat. Yet concern remains that consumer demand may fall with higher prices for meat, driving livestock futures down together with meat prices. August futures for cattle delivery rose $0.004 (0.4 percent) to $0.916 per pound as of 11:25 on the Chicago Mercantile Exchange. July futures for hog settlement lost $0.001 to $0.815 per pound on CME.

Corn, soybeans and wheat fell on prospect for a lower demand as a debt crisis in the European Union causes nations of the region to cut spending and China attempts to rein its economic growth. The favorable weather in the U.S. promises high supplies after next harvest, also affecting prices. July delivery for corn futures dropped $0.07 (1.9 percent) to $3.56 a bushel on the Chicago Board of Trade. July futures for soybean delivery fell $0.125 (1.3 percent) to $9.41 a bushel on CBoT. July futures for wheat delivery subtracted $0.025 (0.5 percent) to $4.69 a bushel.

Dollar’s rally curbed demand for commodities, including cattle, hogs and sugar. Hogs also fell on speculation that record prices for wholesale pork will cut retail sales. Analysts say that demand for sugar is strong and should support prices for the commodity. August futures for cattle delivery slid $0.00525 (0.6 percent) to $0.91475 pound by 11:53 on the Chicago Mercantile Exchange. July futures for hog settlement lost %0.01225 (1.5 percent) to $0.826 per pound on CME. July delivery for raw sugar went down $0.0024 (1.7 percent) to $0.1389 on ICE Futures U.S. in New York.