Commodity Blog

Posts Tagged ‘Argentina’

Wheat dropped today as forecasts promised snowy weather in the US, improving outlook for crops. For now conditions are too dry for plants and snow may aid crops, boosting output. March futures for wheat delivery dropped $0.15 (1.9 percent) to $7.74 per bushel as of 13:15 on CBoT.

Favorable weather also hurt prices for corn and soybeans as rains in Argentina and Brazil may increase output. The regions will receive substantial amount of precipitation over next two weeks to improve prospects for crops. Speculation about declining demand from China drove the prices further down. March futures for corn delivery went down $0.07 (1.2 percent) to $5.95 per bushel by 13:15 on CBoT. March futures for soybean delivery lost $0.13 (0.9 percent) to $13.65 per bushel.

Oil dropped to the lowest level in two weeks today as US nonfarm payrolls were worse than predicted, causing commodities to fall. Payrolls increased by 103,000 in December, while traders expected an increase by 159,000. February settlement for oil delivery slipped $0.35 to $88.03 per barrel on NYMEX, the lowest price since December 17th, after it previously advanced to $89.48.

Crude oil continued to decline today as a government data showed that US inventories of gasoline rose more than predicted. Gasoline stockpiles increased 3.29 million barrels to 218.1 million last week, while they were expected to grew by 0.5 million barrels. February delivery for crude oil slipped $0.93 (1 percent) to $88.45 per barrel by 10:35 on NYMEX.

Corn and soybeans gained today on prediction that dry weather in Argentina and Brazil will diminish output. Forecasts promise that unfavorable weather will persist for about 10 days. March futures for soybean delivery gained $0.24 (1.8 percent) to $13.935 per bushel as of 13:15 on CBoT. March futures for corn delivery advanced $0.1075 (1.8 percent) to $6.1925 per bushel.

Natural gas declined today as specialists predicted that temperatures in the US will be in normal range next week. Previously gas climbed on anticipation of colder-than-normal winter. February delivery for natural gas dropped $0.196 (4.2 percent) to $4.473 per million British thermal units on NYMEX.

Soybeans gained today on speculation that dry weather will harm crops in Argentina. Soybeans also declined as a stronger dollar diminished demand for commodities. March futures for soybean delivery went up $0.0175 (0.1 percent) to $13.0775 per bushel by 13:15 on CBoT.

Sugar rallied today for a fourth consecutive day on speculation that demand may outpace supply even though India is planning to resume export. Consumption of sugar may reach 165.3 million metric tons, almost 3 million tons more than production. The sweetener more than doubled from the level in May, which was the lowest in more than a year.

Cotton dropped today because of high prices and increasing plating in the US. Acreage may increase by at least 10 percent in the Southwest US. March delivery for cotton dropped $0.0235 (1.6 percent) to $1.4214 as of 14:46 on ICE.

Soybeans fell today on speculation that rains will boost crops in Argentina and Brazil. Analysts say that there’s no reason to hold long positions without apparent threat to the harvest. January delivery for soybeans slipped $0.085 (0.7 percent) to $12.73 per bushel by 13:15 on CBoT.

Wheat futures slid after a report showed that world and US inventories increased. Global stockpiles will total 176.72 million metric tons by May 31st, that’s 2.4 percent higher than forecast in the previous month. March futures for wheat delivery dropped $0.13 (1.6 percent) to $7.755 per bushel at 13:15 on CBoT.

Cotton futures climbed to the highest level in a month after US government cut its forecast for inventories to the lowest level in 14 years. US stockpiles in the year ending July 31st will total 1.9 million bales, 14 percent down from the November forecast and the lowest since at least May 1996. March futures for cotton delivery gained $0.0102 (0.8 percent) to $1.3697 per pound as of 14:40 on ICE.

Hogs climbed today as demand for pork in the US is recovering. Analysts say that pork was oversold and now is returning to more “fair” price. December futures for hog settlement added $0.01 (1.5 percent) to $0.662 per pound at 13:05 on CME.

Corn and soybeans gained today for a second consecutive day on forecast that favorable weather will increase supplies. Rains in Brazil and Argentina should boost output. December futures for corn delivery slipped $0.015 (0.3 percent) to $5.7575 per bushel as of 13:15 on CBoT. January futures for soybean delivery slid $0.01 (0.1 percent) to $12.34 per bushel.

Cotton climbed to the record today as demand in China grows. Prices also surged on speculation that adverse weather will curb supplies. December delivery for cotton rose $0.05 (3.9 percent) to $1.3426 per pound by 15:20 on ICE, reaching the highest level in 140 years of trade.

Cocoa reached the highest level in six weeks today on concern about possible disruptions of supplies from Ecuador because of fighting in the country. President Rafael Correa, who were held captive in hospital by police as part of a wage dispute or, according to the president’s opinion, as an organized coup attempt, were freed by Ecuadorean military forces. Ecuador accounts for 4 percent of global cocoa production. December delivery for cocoa rose $34 (1.2 percent) to $2,848 per metric ton as of 12:47 on ICE.

Soybeans dropped today to the lowest level in more than a year on speculation that favorable weather would boost crops in the US, Argentina and Brazil. Dry weather in the US will allow to accelerate planting, while rains in Brazil and Argentina will improve soil moisture for the crops. November futures for soybean delivery subtracted $0.4975 (4.5 percent) to $10.57 per bushel as of 13:15 on CBoT.

Good weather in also drove lower prices for wheat. Parts of Eastern Europe, including Ukraine and Russia, may receive about 0.8 centimeter (0.3 inch) of rain tomorrow, helping crops to recover from drought this summer. December futures for wheat delivery slipped $0.19 (2.8 percent) to $6.55 per bushel by 13:15 on CBoT.

Wheat prices hit the highest level in a week today on an outlook for reduced output from Argentina and Russia because of drought. Global inventories may decline 9.9 percent to 174.8 million metric tons. December futures for wheat delivery gained $0.215 (3.1 percent) to $7.165 per bushel as of 11:21 on CBoT. Concerns about adverse weather boosted wheat futures, causing them to rise 45 percent since the end of June.

Gold fluctuated today, but expected to resume its rally as faltering economic recovery and declining US equities increased demand for the metal as a safe haven. US stocks dropped after a government report showed that personal income rose less than predicted. The gross domestic product rose 1.6 percent in the second quarter of 2010, less than estimated in the previous month. December futures for gold delivery slid $0.5 to $1,237.40 per ounce by 11:25 on COMEX. Gold prices advanced 13 percent this year, touching the record level of $1,266.50 per ounce in June.

Cotton and soybeans dropped today on signs of increasing output. U.S. farmers planted cotton on the area, 19 percent wider compared to the previous year. The soybeans seeded area will be 1.8 percent wider compared to the last year and will reach the all-time record, while combine output of Brazil and Argentina will grow by 37 percent. December delivery for cotton slid $0.0051 (0.7 percent) to $0.7762 per pound as of 9:50 on ICE. November futures for soybean delivery slipped $00325 (0.4 percent) to $9.0875 per bushel by 11:03 on CBoT.

Raw sugar climbed to the weekly high level on forecast that output in India would be reduced by adverse weather. Production in Thailand may also fall; it expected to decline by 13 percent. October delivery for raw sugar rose $0.0041 (2.7 percent) to $0.1569 per pound as of 11:50 on ICE Futures U.S.

Copper rebounded today as the concern for the global recovery eased after the report about the increased manufacturing in the U.S. Chicago PMI index value of 59.1 in June indicated an increase, as figure above 50 signals about growth. September futures for copper delivery gained $0.0165 (0.6 percent) to $2.947 per pound at 12:20 on COMEX.

Soybean prices changed little today and are heading for the biggest weekly increase in two months on the prospect that China will expand its purchases of soybean oil from the U.S. China is shifting to imports of soybean oil from the U.S. and Canada after the country has cut imports from Argentina. The additional demand may put strain on the U.S. supplies. July delivery for soybean futures dropped $0.0075 to $9.9225 per bushel by 11:59 the Chicago Board of Trade.

Wheat reached the highest level in six weeks as speculators decreased bets on falling prices after the largest weekly rally of the futures in two months. Speculative short positions outnumbered long positions by 74,286 contracts by April 6th. Funds were buying to cover short positions every time there was increase on the market. July futures for wheat delivery gained $0.0975 (2 percent) to $5.025 per bushel on CBoT.

Soybeans reached the highest level in seven weeks after the report that China may continue its purchases of supplies from the U.S. The demand for the supplies from the U.S. rose as China stopped the soybean-oil imports from Argentina. The country may import 5.5 million metric tons in the next month. July futures for soybean delivery rose $0.0375 (0.4 percent) to $9.7925 per bushel as of 11:01 on the Chicago Board of Trade.

Copper gained on the weakening dollar and the recovery of the U.S.economy. U.S. retail sales rose in March more than forecast, signaling about the widening economic rebound. The U.S. currency dropped versus the basket of the six major currencies, making commodities more appealing as an inflation hedge. May futures for copper delivery gained $0.0075 (0.2 percent) to $3.608 per pound by 12:10 on NYMEX.