Commodity Blog

Posts Tagged ‘crops’

Gold gained today on speculation that low prices would encourage investors to buy the precious metal. Most analysts say that the decline of prices is temporary and may end soon. It can be considered a good buying opportunity for long-term investors. December futures for gold delivery advanced $6.10 (0.5 percent) to $1,177.30 per ounce on COMEX.

Corn and soybean prices went up today as demand for supplies from the US grew after drought and high temperatures harmed crops from Germany to Russia. Grain output in Germany estimated to drop as much as 11 percent, from 49.6 million metric tons in 2009 to 44 million this year. Drought hurt crops across at least 10.3 million hectares (25.5 million acres) in Russia, causing the government to declare emergencies in 27 crop-producing regions. December futures for corn delivery went up $0.0775 (2 percent) to $4.015 per bushel on CBoT. November futures for soybean delivery rose $0.1175 (1.2 percent) to $9.9975 per bushel as of 10:32.

Corn and soybeans price gained on speculation that dry weather may harm crops in the U.S., the largest grower and exporter in the word. As much as 20 percent of the Midwest crops threatened by heat wave over the next six weeks as temperatures may reach 38 degrees Celsius (100 degrees Fahrenheit). These speculations spurred buying, which is driven primarily not but demand itself, but rather by concern for lower supplies. December futures for corn delivery gained $0.07 (1.8 percent) to $3.94 per bushel as of 10:35 on CBoT. November futures for soybean delivery rose $0.0825 (0.9 percent) to $9.6275 a bushel

Gold slid in New York after prices rose to the highest level in three weeks. The precious metal encountered resistance at the $1,215 level. The analysts say that price below $1,200 is good opportunity to buy. August futures for gold delivery slipped $5.60 to $1,207.90 per ounce by 12:32 on COMEX.

White sugar dropped to the 10-month low in London on expectations of high supply from Brazil and India. Brazil’s output surged and supply may exceed demand in India, turning the biggest buyer into exporter. Increasing supplies together with continuous troubles in Europe cause experts to be bearish in their outlook for sugar. August delivery for white sugar dropped $11 (2.5 percent) to $431.50 per metric ton on Liffe exchange as of 10:39.

Cocoa futures tumbled today as commodities followed decline of global equities. The global economic recovery may be slowed, hurting commodity prices, by the spreading contagion of Greece’s fiscal crisis. The Standard & Poor’s 500 Index may are heading toward the largest weekly decline since March 2009. July futures for cocoa delivery sank $178 (5.6 percent) to $3,025 per metric ton by 11:55 on ICE Futures U.S. in New York.

Palladium and platinum declined today on a speculation that investors will prefer gold as an alternative investment. Analysts say that traders will be shifting from the platinum-group metals toward gold. Immediate delivery for palladium fell $33.60 (6.5 percent) to $484.40 per ounce in London. Platinum dropped $44.40 (2.7 percent) to $1,624.60 per ounce.

Corn and wheat gained today on a speculation that crops in the U.S. and some other parts of the world will be damaged by an adverse weather. Low temperatures may harm crops in the U.S., while dryness may impede a growth of the crops in some parts of China, Australia, Canada and Russia. July futures for corn delivery gained $0.04 (1.1 percent) to $3.73 per bushel on the Chicago Board of Trade. July wheat futures added $0.0125 (0.2 percent) to $5.12 per bushel on CBoT.

Soybeans dropped today on a concern that a demand for the commodity may be reduced as the global economic recovery can be slowed by the persisting fiscal problems in Greece. As Greece’s budget deficit crisis threatens to spread across whole Europe markets are suffering. July futures for soybean delivery fell $0.09 (0.9 percent) to $9.78 per bushel on CBoT.

Corn, soybeans and wheat slid today as a stronger dollar diminished an appeal of commodities as an alternative investment and made exports from the U.S more expensive. The crops also fell on a concern that domestic prices may go down as the oil spill will cut exports. July futures for corn delivery dropped $0.03 (0.8 percent) to $3.7225 per bushel by 10:20 a.m. on the Chicago Board of Trade. July futures for soybean delivery slipped $0.0975 (1 percent) to $9.8925 per bushel in Chicago. July futures for wheat delivery subtracted $0.0825 (1.6 percent) to $4.9475 per bushel.

Sugar dropped today as a supply may exceed a demand in India, pushing prices down and possibly turning the largest buyer in the world into exporter. Cane planting increase 18 percent, resulting in a possibility for a production to exceed 25 million metric tons in the year starting October 1st. The Indian government may impose a tax on imports to protect the industry and farmers. A global demand for sugar may be surpassed by an output by 6 million tons in 2010–11 season. July delivery for raw sugar slipped 1.7 percent to $0.1490 per pound on ICE.

Corn futures gained for a second day on the prospect for a slower price decline as the crop planting by the U.S. farmers has started. Some funds may start buying back short positions as traders hold selling, waiting for the Midwest farmers to begin planting. May futures for corn delivery rose $0.0075 (0.2 percent) to $3.465 per bushel on the Chicago Board of Trade.

Soybeans advanced on the outlook for the global economic recovery to spur the demand for the oilseed, used in the production of food and animal feed. The improving situation on the U.S. job market, as well the expanding economies in such countries as India and China, signals about the end of the global economic recession. May futures for soybean delivery added $0.085 (0.9 percent) to $9.445 per bushel on CBoT.

Wheat prices jumped to the highest level in almost five weeks after some hedge funds and speculators unwound bets on a price decline. Speculative short positions more than doubled in the first quarter of this year. Analysts say that market is nearly record short and any bullish news may shoot the market higher. July futures for wheat delivery climbed $0.10 (2.1 percent) to $4.7725 per bushel on CBoT.

Soybeans gained after demand for the grain from makers of animal feed and vegetable oil in the U.S. increased in the past month. Processors consumed 148.35 million bushels of soybeans in February, which is 15 percent higher than in the previous year and highest level for the month ever. Dwindling U.S. stockpiles is a supportive factor for the grain price. May futures for soybean delivery rose $0.0525 (0.6 percent) to $9.3075 per bushel as of 11:25 on CBoT.

Wheat fell on concern that a rising dollar will cut appeal of the U.S. supplies and as good weather conditions resulted in the favorable outlook for the winter crop in Kansas. The greenback rebounded 0.7 percent versus a basket of six major currencies. The government report showed that inventories may reach 27.2 million metric tons by May 31st, the highest level since 1988. May futures for wheat delivery slid $0.045 (0.9 percent) to $4.8075 per bushel by 11:45 on the Chicago Board of Trade.

Wheat gained as U.S. farmers are cutting sales on anticipation that a weaker dollar will increase demand for the grain. Price was falling as global wheat supplies are increasing faster than world demand but low wheat planting this winter may cause lack of supplies, leading to rebound in price. May futures for wheat delivery rose $0.1125 (2.2 percent) to $5.1575 per bushel on the Chicago Board of Trade.

Corn advanced on speculation that excessive rainfall may harm crops in Argentina. Price is supported by combination of a falling dollar, adverse weather and improving world stock markets, as well as by farmers, who are holding crops for higher prices. May futures for corn delivery jumped $0.0525 (1.4 percent) to $3.8675 per bushel in Chicago.

Gold may rise to $1,162 per ounce, according to technical analysis, in case prices hold above $1,135 level. The precious metal advanced 3.6 percent this year. Gold traded at $1,136.45 by 10:44 in London.

White sugar gained in London on signs that a global production deficit may persist, encouraging importers to increase inventories. Production of sugar cane in Brazil and India, the largest growers in the world, was hampered by adverse weather. Analysts forecast that global demand will exceed worldwide output by 9.4 million metric tons in the 2009–10 season. May delivery for white sugar rose $7.60 (1.1 percent) to $714.50 per metric ton on the Liffe exchange.

Wheat, soybeans and corn dropped in Chicago after the dollar gained, making purchases of U.S. crops unprofitable for traders, who are using other currencies. May delivery for wheat lost 1.3 percent to $4.9325 per bushel on CBoT by 12:34. Argentina, the third biggest soybean exporter in the world, may produce more soybeans than previously predicted record 52 million tons with the aid of rains. May delivery for soybeans declined 0.7 percent to $9.575 per bushel. Corn planting is expected to increase from 86.5 million acres last year to 89 million this year. May delivery for corn fell 0.7 percent to $3.6625 per bushel.

Sugar futures rose on speculation that the global deficit will be higher than forecasted. Analysts say that “sugar has favorable technicals and fundamentals”. March futures for raw-sugar delivery added $0.0012 (0.4 percent) to $0.294 per pound on ICE Futures U.S. in New York.

Wheat futures gained in Chicago on forecast that supplies may decline because farmers in the U.S. cut selling after prices dropped last month to the lowest level since June. Prices are also aided by expectation of rising demand for U.S. wheat. March futures for wheat delivery went up $0.125 (2.6 percent) to $4.8725 per bushel on CBoT.

Cotton prices rose, ending the longest decline since September 2008, on outlook for improving demand in China, the biggest buyer of the fiber in the world. The area planted with cotton may decrease by 4.9 percent and reductions in the crop supply may cause Chinese textile producers to increase imports. March futures for cotton delivery gained $0.0104 (1.5 percent) to $0.6926 per pound on ICE.