Commodity Blog

Posts Tagged ‘Chicago’

Gold prices rose on expectation that the dollar will drop, spurring the demand for the precious metal as an inflation hedge. The U.S currency little changed versus a basket of six major currencies since it reached a five-month record on January 21st. Last week gold slid 3.6 percent, encouraging some investors to buy the commodity. February futures for gold delivery gained $6 (0.6 percent) to $1,095.70 per ounce on the New York Mercantile Exchange’s Comex unit.

Wheat futures tumbled in Chicago on speculation that growing global stockpiles will surpass demand for the grain. Analyst predict that global inventories may jump 19 percent to 195.6 million metric tons by the end of the marketing year on May 31st. Consumption is predicted to increase 0.7 percent to 644.5 million tons. December futures for wheat delivery dropped $0.0025 to $4.9825 per bushel on CBoT.

Refined copper imports in China, the greatest buyer in the world, rebounded in November with rising domestic prices and increasing demand. China may increase imports to 200,000 tons per month in the first quarter of 2010 as high domestic prices made purchases from overseas sellers cheaper. Delivery for copper in three months on LME dropped 0.6 percent to $6,895 per ton by 15:21 in Shanghai.

Corn slid and soybeans went down as the dollar gained, curbing the attractiveness of commodities as an alternative investment. Analysts says that the strong dollar “is encouraging some speculators to reduce long positions”. March futures for corn delivery went down $0.055 (1.4 percent) to $3.945 per bushel as of 10:32 on CBT. March futures for soybean delivery slid $0.1075 (1.1 percent) to $9.9775 per bushel in Chicago.

Crude oil rose as the dollar dropped and on speculation about global economic restoration. A rising dollar cut demand for commodities as an alternative investment. February delivery for crude oil gained $0.62 (0.8 percent) to $74.34 per barrel by 13:13 on the New York Mercantile Exchange.

Sugar rose to the weekly high on speculation that production will fall in India, the second-biggest producer in the world. The sugar production in the season started October 1st in India expected to be somewhat lower than previously expected 16 million metric tons. March futures for sugar delivery added $0.0038 (1.7 percent) to $0.2304 per pound on ICE.

Corn futures slid to the weekly low as farmers in the U.S. are selling a near-record harvest to profit from a 22 percent rally since October 2nd. Analysts consider rally to be “capped”. March futures for corn delivery slid $0.08 (1.9 percent) to $4.065 per bushel on CBT.

Wheat dropped as the rising price last month diminished the attractiveness of the U.S. grain. Traders may begin selling the commodity after the price reached $5.98 per bushel, the record price since November 23rd, yesterday in Chicago. March futures for wheat delivery dropped $0.08 (1.4 percent) to $5.76 per bushel by 10:01 on CBT.

Copper prices jumped to the highest in six weeks as the weakening dollar and faster economic restoration signaled that demand for the metal used in pipes and wires may go up. The dollar slumped 0.8 percent against a basket of six major currencies. The decreasing jobless rate and supply concerns are also bolstering market. December futures for copper delivery jumped $0.104 (3.7 percent) to $2.8835 per pound by 11:57 on the Comex division of the New York Mercantile Exchange.

Protests against high prices for food, including rice, may again take place in Asia in 2010 because drought in India and crop losses in the Philippines may cause prices to jump. Drought in India may cut rice production by 18 percent to 81 million tons in the year beginning October 1st, causing less global supplies to be available for importers. Stockpiles may drop further as two storms in the Philippines, the biggest importer in the world, destroyed about 450,000 tons (7 percent) of the fourth-quarter rice crop. The contract for November rice delivery gained 0.6 percent to $13.305 per 100 pounds today in Chicago.

Rice exports from Thailand, the biggest shipper in the world, may exceed forecast this year and reach a record in 2010 because of high African demand and a lack of shipments from India. India cut rice shipments last year on concern about global shortage, leading to record prices for the grain. Same crises may happen as rising energy costs again spur commodity prices, including rice. Rice futures reached $13.30 per 100 pounds yesterday in Chicago.

Copper is falling in New York for a fifth-straight weekly decline, the longest slide in a year. December futures for copper delivery fell $0.051 (1.9 percent) to $2.686 per pound by 8:16 on the New York Mercantile Exchange’s Comex division.

Demand for corn and soybean rises after price slump boosted attractiveness of these commodities. After several weeks of decline caused by the increased square of the farmers’ crops (because of the cool, wet weather) prices rebound. Soybean have a biggest gain in a week and two-day slide of corn stopped. December corn futures went up $0.0175, or 0.5 percent, to $3.27/bushel as of 10:44 on the Chicago Board of Trade. November futures for soybean gained $0.1575 (1.8 percent) to $9.0575/bushel.

Rise of inflation caused gain in gold as the traders want to hedge their assets. U.S. housing starts rose to the biggest level since November 2008, while building permits grew at a fastest pace this year in June, giving higher outlook for inflation. August gold futures gained $1.90 (0.2 percent) to $937.30 as of 11:27 on NYMEX.

Wheat futures fell to the lowest in nearly two months in Chicago on concern the dollar may extend its gains, curbing demand for the grain from importers and investors. Soybean and corn futures also declined.

The Dollar Index, which tracks the greenback against six currencies, fell 0.1 percent at 9:42 a.m. in Singapore, after gaining 0.9 percent yesterday as the Federal Reserve kept its $1.75 trillion bond-purchase program unchanged while saying the pace of the U.S. economic contraction is slowing.

The dollar is “causing concerns with the direction for the grain market,” Jonathan Barratt, managing director at Commodity Broking Services Pty in Sydney, said by phone today.

Wheat for July delivery fell as much as 0.8 percent to $5.3525 a bushel, the lowest price since April 30, in after- hours electronic trading on the Chicago Board of Trade. The futures traded at $5.36 a bushel at 10:09 a.m. Singapore time. September-delivery wheat, the contract with the most open interest, dropped as much as 0.8 percent to $5.6325 a bushel before trading at $5.6425.