Cattle & Hogs Climb to Record, Oil & Gold Extend Rally
Oil extended its rally for the fourth day as US stockpiles of crude decreased more than expected. Energy Department reported that crude oil inventories declined 2.15 million barrels to 333.1 million last week, compared to the expected decrease by 1.4 million barrels. The February contract for crude gained $0.3 (0.3 percent) to $92.16 per barrel on NYMEX.
Gold rallied on the signs of increasing imports in India. Ajay Mitra, the managing director for India and the Middle East at the World Gold Council, informed that India’s imports possibly have increased to 800 metric tons from 557 tons in 2009, exceeding its previous record. Spot price for gold was $1,381.90 per ounce in Mumbai yesterday.
Cattle futures reached the record and hogs rose to the highest level in eight months on the speculation that increasing feed costs will force farmers to cut supplies. Corn, the main ingredient in livestock feed, jumped to the highest price in 29 months as the government forecast for US stockpiles worsened. February futures for delivery cattle advanced $0.0175 (1.6 percent) to $1.102 per pound by 13:11 on CME. April futures for hog delivery rose $0.01875 (2.2 percent) to $0.87025 per pound.
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