Commodity Blog

Posts Tagged ‘CME’

Cattle futures surged as unusually hot weather in US may cause decrease of animals’ weight, reducing beef supplies from the US. Hogs prices also rose. Animals tend to gain less weight when weather is hot as they eat less food. And weather is hot as average temperature in major cattle-producing states was 43 degrees Celsius (110 Fahrenheit).

Average weight of steer carcasses at slaughter was 391.5 kg (863 pounds), 2.9 percent less compared to the same period in the previous year. CME-monitored inventories of pork bellies dropped 73 percent in the year through July after hog producers in the US cut herds to curb their losses in 2008 and 2009. Low supplies should support prices. On the other hand, high prices may damp demand from retailer.

October futures for cattle delivery rose $0.01575 (1.7 percent) to $0.958 per pound as of 11:44 on CME. October futures for hog settlement went up $0.0015 (0.2 percent) to $0.79075 per pound.

Hogs futures slipped today on forecast that high US pork prices may diminish retail demand. Meatpackers shipped 9.215 million pounds of pork last week, the worst week since late June. October futures for hog settlement slid $0.003 (0.4 percent) to $0.793 per pound at 9:42 on CME.

Raw sugar experienced a strongest decrease in almost two moths on speculation that supplies from Brazil and India, the world’s largest producers, would increase, erasing the global deficit. Production in Brazil’s Center South increased by 26 percent in the first half of July, while cane planting in India was boosted by rains, which were 2.5 percent above the 50-year average in July. October delivery for raw sugar slumped $0.0079 (4.1 percent) to $0.1861 per pound by 9:45 on ICE.

Coffee futures dropped the most in two weeks on speculation that the commodity rallied too much, considering the anticipated high supplies from Brazil, the biggest producer. Global coffee production may grow 12 percent to 135 million bags in the year starting October 1st. September delivery for Arabica coffee slid $0.0475 (2.8 percent) to $1.6775 per pound as of 10:04 on ICE.

October cattle futures rose to the highest level in more than 8 weeks today as the speculations that the extremely hot weather will impact the amount of beef produced by the farmers.

First of all, the unusually hot summer has already killed some animals in U.S, as reported by the Kansas Livestock Association (KLA). Second, the current heat levels threaten the weight gains of the living cattle, decreasing the amount of useful meat extracted by the farms. Meanwhile National Weather Service predicts further increase of the temperature in the states that are the major producers of the commodity.

According to the reports by KLA the cattle deaths due to heat started to occur since about July 16, while the number of such deaths isn’t report. Rich Nelson of Allendale Inc. commented on the current situation:

There were those limited deaths in Kansas, but the bigger deal is the impact on potential weight gains for cattle in the feedlots.

Cattle futures contracts with delivery in October rose from $0.94500 to $0.94875 (or about 0.4 percent) as of 16:09 GMT today on the CME after reaching as high as $0.95025 during early trading session.

Cocoa futures gained today after the report about increased demand in North America. The cocoa grind increased by 12 percent in the second quarter to 117,657 metric tons compared to the previous year. Analysts say that grinding numbers show strong demand and support prices. September delivery for cocoa rose $21 (0.7 percent) to $3,165 per ton on ICE.

Hogs futures went up today as hot weather in the U.S. causes decrease of animals’ weight, causing concern about declining pork supply. The animals tend to eat less with such jot weather, decreasing their weight. Hogs purchased yesterday by pork processors weighed 2 kilograms (4.44 pounds) compared to the same day in the previous month. October futures for hog settlement gained $0.00375 (0.5 percent) to $0.757 per pound on the CME.

Coffee price jumped today as the weak dollar increased appeal of some commodities. The greenback slid 1 percent against the basket of six major currencies today. Analysts say that in case the futures would break the $1.70 level, the price would go up. September delivery for Arabica coffee gained $0.037 (2.2 percent) to $1.686 per pound as of 9:28 on ICE Futures U.S. in New York.

Cattle futures extended this month’s rally, climbing today to the highest level in eight weeks, on forecast that demand for beef exports from the U.S. would increase after the dollar dropped. Beef exports from the U.S. rose as much as 27 percent in May to 203.55 million pounds compared to 160.46 million in the previous year. October futures for cattle delivery rose $0.00375 (0.4 percent) to $0.93775 per pound by 10:59 on CME.

Cattle futures gained on signs of increasing demand for U.S. beef. Wholesale beef, shipped by meatpackers in the week that ended yesterday, climbed as much as 44 percent to 43 million pounds, compared to 29 million pounds in the week earlier. October futures for cattle delivery rose $0.00875 (1 percent) to $0.92275 per pound on CME.

Cotton futures rebounded as the weaker dollar boosted demand for some commodities as an inflation hedge. The U.S. currency dropped to the lowest level in two months versus the basket of six currencies. December delivery for cotton gained $0.0086 (1.2 percent) to $0.7465 per pound on ICE Futures U.S.

Copper and aluminum prices rose after aluminum producer Alcoa Inc. reported that its earnings were higher than expected. Alcoa Inc. forecast that global aluminum demand would grow 12 percent in 2010. September futures for copper delivery added $0.0085 (0.3 percent) to $3.0175 per pound on COMEX. Aluminum rose 1.2 percent to $1,995 per metric ton on LME.

Arabica coffee climbed to the weekly high level today amid speculations that supplies would decline. Inventories tracked by ICE sank 29 percent this year to the lowest level since August 2002 as of July 7th. Global exports will be below last year’s forecast of 95.5 million bags (1 bag equals 60 kilograms or 132 pounds). September delivery for Arabica coffee gained $0.024 (1.5 percent) to $1.645 per pound at 10:01 on ICE.

Cattle futures dropped today on expectation that outdoor grilling in the U.S. would decline because of jot weather, diminishing demand for beef. Prices also may slump as investors liquidate positions after the three-day rally. Prices were rising throughout this year partly because of growing demand for beef. August futures for cattle delivery dropped $0.004 (0.4 percent) to $0.905 per pound as of 10:47 on CME.

Cattle and hogs futures gained today on outlook that demand for U.S. exports would rise as stocks gained and the dollar fell. The dollar tumbled today as much as 0.8 percent versus the basket of six major currencies, increasing attractiveness of U.S. exports. August futures for cattle delivery gained $0.01275 (1.4 percent) to $0.9075 per pound by 9:14 on CME. August futures for hog settlement went up $0.00525 (0.7 percent) to $0.80575 per pound.

Copper prices rose today as declining stockpiles suggested that demand would remain strong despite the slowdown of the global economic recovery. LME-monitored inventories declined 12 percent this year and fell to the lowest level in seven months today. September futures for copper delivery rose $0.092 (3.2 percent) to $3.9925 per pound by 11:33 a.m. on COMEX.

Corn prices dropped today on prediction that rainfalls would increase soil moisture and boost harvest in the U.S., the largest exporter in the world. Analysts say that prices are high enough, despite fewer than planned acres were sowed last month because of unfavorable weather. December futures for corn delivery slid $0.0275 (0.7 percent) to $3.8175 per bushel as of 12:54 on CBoT.

Raw sugar rose today for a third consecutive day on outlook for increasing purchases from Russia next month as the import tax was lowered. Analysts say that sugar prices may go up 30 percent in 2010 on rising demand, low output and transportation delays. October delivery for raw sugar gained $0.0026 (1.6 percent) to $0.1654 per pound on ICE.

Cattle and hogs slid today on concern for economic growth as the U.S. payrolls was lower than expected. Demand for meat also tends to fall in July and August because of hot weather. August delivery for cattle futures slipped $0.002 (0.2 percent) to $0.8975 per pound as of 12:01 p.m. on CME. August settlement for hog futures dropped $0.008 (1 percent) to $0.8105 per pound.

Cocoa dropped today on concern that the U.S. economic recovery would stall, damping demand for commodities. U.S. nonfarm payrolls dropped in June more than expected. Housing market and manufacturing sector also showed signs of weakness. September delivery for cocoa declined $70 (2.3 percent) to $2,971 per metric ton on ICE.

Wheat futures dropped today as favorable weather may help U.S. farmers to accelerate harvest. Demand for U.S. wheat also fell because importers turned to supplies from the Black Seas region. September futures for wheat delivery slid $0.06 (1.3 percent) to $4.65 a bushel on CBoT.

Soybeans gained today, erasing the previous losses, on speculation that excessive precipitation in the U.S. would reduce the area, in which the crop would be planted. Soybean planting probably may drop from the forecast 78.1 million to 76.5 million acres. November futures for soybean delivery slipped $0.06 (0.7 percent) to $9.18 per bushel as of 1:12 p.m. the Chicago Board of Trade.

Hog futures slid today on speculation that increasing profits would encourage U.S. farmers to reduce cuts of hog herd. According to analysts, producers aren’t expanding for now, yet they may be planning to do that in future. August futures for hog settlement subtracted $0.0175 (2.1 percent) to $0.82175 per pound on CME.