Commodity Blog

Posts Tagged ‘cattle’

Wheat futures slid on speculation that the stronger dollar and growing global stockpiles will cut demand for the U.S. grain. U.S. government forecast that world wheat inventories will rise 19 percent to 195.9 million metric tons in the year ending May 31st, the record level since 2002. May futures for wheat delivery slid $0.075 (1.4 percent) to $5.12 per bushel by 10:25 on the Chicago Board of Trade.

Crude oil fluctuated as the dollar rebounded versus the euro, equities rose more than predicted and on speculation about the global economic recovery. U.S. Energy Department reported that U.S. supplies of crude oil rose 1.73 million barrels last week. March delivery for crude oil dropped $0.18 to $76.83 per barrel as of 10:53 on NYMEX.

Cattle futures tumbled from a 15-month record as U.S. wholesale prices for the meat reached a highest in four-weeks, signaling that retailers may slow purchases of beef. Wholesale choice beef rose 0.6 percent to $1.4486 per pound, the highest price since January 20th, as cold weather in the U.S. reduced cattle-weight gains and diminished beef supplies. April delivery for cattle futures subtracted $0.002 to $0.91975 per pound at 11:23 on CME.

Cattle futures slid today on signs that the stronger dollar will cut appeal of  the U.S. beef. The dollar rose 0.9 percent against a basket of six major currencies to a record level since July. The rising dollar makes purchases of beef from the U.S. unprofitable for overseas traders. April futures for cattle delivery slid $0.003 (0.3 percent) to $0.9125 per pound by 12:06 on the Chicago Mercantile Exchange.

Cocoa prices dropped after the dollar rebounded versus the euro and equities declined, decreasing appeal of some commodities for investors as safe haven. The dollar jumped on speculation that a European Union plan to aid Greece avoid default will fall. Analysts say that downward trend for cocoa can be short-term. May futures for cocoa delivery fell $17 (0.5 percent) to $3,099 per ton at 12:11 on ICE.

Cattle futures slid for the second time this week on speculation that demand for a beef has declined as wholesale prices rose in January to a highest level in seven months. Beef price touched the record level since May 27th at January 19th, causing retailers and importers to cut buying. Since January 19th beef has fallen 4.5 percent. April futures for cattle delivery slid $0.00625 (0.7 percent) to $0.8925 per pound by 9:39 on the Chicago Mercantile Exchange.

Wheat futures tumbled in Chicago on forecast that dollar will advance, curbing the demand for U.S. grain as an alternative investment. The dollar rose 0.5 percent versus a basket of six major currencies today, the first gain this week. Some speculators may begin selling commodities which they purchased when dollar was weak. March futures for wheat delivery subtracted $0.0875 (1.8 percent) to $4.785 per bushel as of 9:59 on CBoT.

Cattle futures went up and hogs advanced after the dollar slid, spurring the demand for commodities as an alternative investment. The U.S. currency declined versus a basket of six major currencies. February futures for cattle delivery added $0.00475 (0.6 percent) to $0.85225 per pound as of 10:06 on CME. February futures for hog’s settlement gained $0.004 (0.6 percent) to $0.0642 per pound.

Gold futures may decline as some investors sell after the precious metal reached a record high this year. Analysts think that gold rally is curbed until demand outpaces supply. February delivery for gold futures dropped $0.30 to $1,104.50 per ounce by 10:52 on the New York Mercantile Exchange’s Comex unit.

Cattle rose on forecast that adverse winter weather in the northern U.S. Great Plains may slow animal-weight increases. Animals tend to gain less weight in winter, as they expend more energy to stay warm. As a result colder winter means slower weight increase. February futures for cattle delivery rose $0.00275 (0.3 percent) to $0.83475 per pound as of 12:36 on CME.

Corn dropped to the lowest in three weeks on prediction that the U.S. inventories will grow. Analysts consider export demand to be slow. March futures for corn delivery dropped $0.01 (0.3 percent) to $3.875 per bushel by 12:43 on the Chicago Board of Trade.

Soybean processing in U.S. declined 7.4 percent last month from a year earlier with lower demand for animal feed and vegetable oil and inventories, shrinking from July levels. U.S. feed consumption slowed as beef, pork and dairy producers reduced herds to decrease losses. Farmers are selling dairy cows for slaughter after the government forecast that milk prices will fall 34 percent in 2009. November futures for soybean declined $0.235 (2.5 percent) to $9.03 per bushel on September 11th on CBoT.

Hog futures slid to the two-weeks lowest and cattle dropped on speculation that China, the second-biggest buyer of U.S. chicken meat and pork last year, will halt imports of U.S. poultry. In this case more meat will be left on the U.S. market to compete with pork and beef. China said yesterday it will begin probes of alleged dumping and subsidies for U.S. chicken and auto products; today China filed a complaint to the World Trade Organization about U.S. President’s decision to impose a 35 percent tariff on Chinese tires. December futures for hogs slid $0.01075 (2.2 percent) to $0.4875 per pound by 11:36 on the Chicago Mercantile Exchange. December futures for cattle dropped $0.00325 (0.4 percent) to $0.866 per pound.

Beef demand falls, hogs slump today. Cattle futures dropped the most in seven weeks resulting in concern that beef demand is wane as the recession continues while hogs fell to the lowest since February. October futures for cattle dropped $0.01025 (1.1 percent) to $0.901/pound by 10:42 on CME.

Supply concerns rise causing sugar gain today. Demand in the world will surpass production resulting in concern that the worldwide supply deficit will increase. October futures for raw-sugar gain $0.0007 (0.4 percent) to $0.1787/pound as of 12:04 on ICE Futures  U. S. in New York.

The falling dollar increased the attractiveness of precious metals as an alternative investment causing gold to go up today. Federal Reserve Chairman Ben S. Bernanke reimplemented a plan to keep benchmark U.S. lending rates at historic lows for a continuous period. August futures for gold increased $5.50 (0.6 percent) to $952.40/ounce at 12:39 on the New York Mercantile Exchange’s Comex division.