Crude & Coffee Fall, Meat Advances on Rising Demand in USA
Crude oil futures dropped to the lowest since October on speculations that economic growth in the United States is slowing. Jobless claims unexpectedly increased from 373k to 383k last week. Chicago Purchasing Managers’ Index was down from 56.2 in April to 52.7 in May, instead of rising as was predicted. At the same time, US inventories of crude rose by 2.2 million barrels to 384.7 million barrels last week. July futures for delivery of crude oil dropped $0.04 to $86.49 per barrel in electronic trading on NYMEX, while yesterday prices touched 1.5 percent to $86.53, the lowest close since October 20. Brent crude was down from $103.22 to $101.62 yesterday on ICE and traded near that level today, while yesterday’s low was at $101.27 — the lowest level since October 5.
Coffee fell on forecast that global supply will outpace demand. The International Coffee Organization estimated that global consumption rose 1.7 percent last year, being below the average level in the past 12 years. Analysts predict that world production will advance to 134.3 million bags in the season started in October. Coffee price dropped from $1.6435 to close at $1.6055 on ICE yesterday, while during the trading session it touched $1.6015, the lowest since July 22, 2010.
Hogs climbed to the highest level in 16 months as demand for pork in the USA grew. Price for wholesale pork demonstrated the biggest monthly gain since July. The rally was likely caused by the Memorial Day holiday weekend. Analysts said that demand for other meat is also rising. July futures for delivery of hogs climbed by the exchange limit of $0.03 (3.4 percent) to $0.91 per pound by 13:00 on CME, the highest price for a
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