Commodity Blog

Commodity Prices – Wheat

Wheat gained today amid speculations that demand might increase with shortage of corn. U.S. farmers sowed less acreage with corn than was predicted. Corn is competing grain used to feed livestock, therefore shortage of corn boosts wheat. September futures for wheat delivery gained $0.075 (1.6 percent) to $4.8775 per bushel as of 10:01 on CBoT.

Orange-juice futures rose to the highest level in 15 weeks as hurricanes threaten to damage citrus harvest this season in Florida. According to government’s forecasts, orange crop in Florida would drop to 133.6 million boxes in the harvest ending in July from 162.5 million boxes in the previous season. Speculator increased their net-long positions as of June 22nd by 26 percent from the previous week. September delivery for orange juice added $0.0015 (0.1 percent) to $1.485 per pound by 12:07 on ICE.

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.

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 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.

Wheat gained today on outlook that production in the U.S., Canada and Russia would decline because of adverse weather. U.S. output may decline 6.7 percent in the year started June 1st; Canadian farmers sowed 7.1 percent less acres than in the previous year; Russia expected to harvest 55.9 million metric tons of wheat, 9.5 percent fewer than previously predicted. September futures for wheat delivery gained $0.0475 (1 percent) to $4.805 per bushel as of 10:24 a.m. on CBoT.

Corn and soybeans fell today on forecast that warm weather would boost harvest. Another reasons for drop of the commodities were the stronger dollar and the outlook for lower demand from China. December futures for corn delivery slid $0.0375 (1 percent) to $3.6825 per bushel by 11:09 on the Chicago Board of Trade. November futures for soybean delivery fell $0.11 (1.2 percent) to $9.25 a bushel.

Sugar dropped today, erasing previous gains, after new home sales in the U.S. tumbled, signaling that the economic recovery may stall. Markets were also bothered by slumping equities and falling crude oil prices. October delivery for raw sugar slipped $0.0011 (0.7 percent) to $0.1581 per pound on ICE Futures U.S.

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.

Wheat rose today amid speculations that planting in Canada might be at its lowest level in almost four decades because of excessive precipitation. Farmers in Canada, the second largest grower of the grain in the world, may plant 19.15 million acres of wheat, down 18 percent from the previous year and the lowest level since 1971. September futures for wheat delivery gained $0.0175 (0.4 percent) to $4.785 per bushel on the Chicago Board of Trade.

Sugar dropped today from its highest level in seven weeks as traders think that prices rallied too much. Analysts say that fundamentals remain unchanged and the decline is just correction after an excessive rally. October delivery for raw sugar slipped $0.0045 (2.8 percent) to $0.156 per pound on ICE.

Arabica-coffee also declined on the opinion that its rally was overdone. Experts have divided opinions on an optimal price level for Arabica-coffee. Some say that current price is where it has to be, while others argue that fundamentals are pointing to higher price. September delivery for Arabica-coffee slid $0.018 (1.1 percent) to $1.578 per pound on ICE.

Wheat and soybeans gained as heavy rains halted fieldwork in the U.S. Precipitation in an area from Iowa through Texas last week was six times larger than normal. The excessive rainfalls may delay soybean planting, which was 91 percent finished as of June 13th, while winter-wheat harvesting was 9 percent complete. September futures for wheat delivery advanced $0.11 (2.4 percent) to $4.785 per bushel as of 10:51 on CBoT. November futures for soybean delivery gained $0.065 (0.7 percent) to $9.22 per bushel.

Corn rose on speculation that demand from overseas importers and domestic ethanol producers will rise. China has purchased 120,000 metric tons from U.S. by June 14th. U.S. ethanol producers may use 4.7 billion bushels of corn in the marketing year starting on September 1st, compared to 4.55 billion in the previous year. December futures for corn delivery added $0.0425 (1.1 percent) at $3.7925 per bushel on CBoT.

Orange-juice futures dropped on forecast that the crop in Florida, the second biggest producer in the world, would be bigger than previously predicted. Forecast says that yield would total 133.6 million boxes in the harvest ending in July, 1.5 percent up from previous estimates. July futures for orange-juice delivery declined $0.0045 (0.3 percent) to $1.3785 per pound yesterday on ICE.

Cotton prices climbed today to the highest level in a week after exports in the U.S. jumped amid speculation that the global economic recovery would retain its pace, boosting the demand. U.S export sales of cotton jumped to 624,200 running bales in the week ended June 3rd, more than three times compared to the week before. December delivery for cotton jumped $0.0144 (1.9 percent) to $0.7907 per pound on ICE Futures U.S. in New York.

Wheat gained today after the U.S. government predicted that domestic inventories of corn, which is used for feeding livestock, would decline more than expected. Stockpiles expected to fall to 1.603 billion bushels by the end of the marketing year on August 31st. July futures for corn delivery went up $0.05 (1.5 percent) to $3.4325 per bushel on CBoT.

Corn gained today after the yesterday’s government report showed that the condition of the U.S. crop worsened. About 5 percent of the corn crop was rated from poor to very poor. July futures for corn delivery gained $0.0075 (0.2 percent) to $3.365 per bushel by 9:56 on the Chicago Board of Trade.

Wheat prices went up on speculation that rains will slow the harvest. By June 6th farmers harvested around 3 percent of the crop, which is 6 percent lower than the five-year average for this period. July futures for wheat delivery advanced $0.0225 (0.5 percent) to $4.3450 per bushel as of 10:15 on CBoT.

Cattle futures advanced on speculation that the price, which fell to the lowest level in five months, will boost demand. The weaker dollar also increased the demand, making the U.S. meat exports cheaper. August futures for cattle delivery went up $0.002 (0.2 percent) to $0.87925 per pound by 12:12 p.m. on CME.