Commodity Blog

Posts Tagged ‘Europe’

Raw-sugar futures gained today on concerns that drought may threaten harvest in Brazil, the largest producer. Harvest of sugar-cane in Brazil’s Center South, the biggest growing region in the world, may be lower than estimated 570 million metric tons if dry weather persists. October delivery for raw sugar rose $0.0063 (3.2 percent) to $0.2038 per pound as of 10:48 on ICE.

While in some countries wheat harvest is also threatened by drought, in Europe wheat faces other danger: excessive rains. Wheat prices jumped on speculation that Germany and some other countries of the Western European Union would have too much rain and also after Egypt bought 225,000 metric tons of wheat from the US. December futures for wheat delivery gained $0.23 (3.4 percent) to $7.0875 per bushel by 13:15 on CBoT.

Crude oil prices jumped today after manufacturing in the US and China expanded in August faster than expected. ISM PMI in the US rose from 55.5 to 56.3 in August. October settlement for crude oil (Brent) went up $1.71 (2.3 percent) to $76.35 per barrel on ICE.

Gold dropped today from the highest price in six months after the stronger dollar decreased appeal of the precious metal as an alternative investment asset. The US currency gained as much as 0.2 percent versus the basket of six currencies today. Gold have tendency to move in an inverse pattern to the dollar. Gold also fell after some traders sold the metal to profit from high prices.

Gold prices previously surged on concerns about the global economic recovery. Outlook for the US economy is grim after dovish statement of the Federal Reserve this week, China’s economic expansion is slowing and Europe’s economy may be crippled by budget cuts. Actually, these concerns hadn’t gone away, so gold still has great potential. Considering increasing demand in Asia, especially in China and India, we can expand that bullion’s rally will continue.

December futures for gold delivery slid $2.30 (0.2 percent) to $1,214.40 as of 11:09 COMEX. Gold futures previously rose to $1,219.80, the highest price since July 1. The metal reached the record $1,266.50 level per ounce in June.

Cattle and hogs declined on concerns that global demand for U.S. beef and pork will wane after the dollar rose and equities fell. The global economic recovery is slowed by the EU crisis, making prospect for beef and pork demand less certain. August futures for cattle delivery subtracted $0.01175 (1.3 percent) to $0.89025 per pound by 9:40 on the Chicago Mercantile Exchange.

Wheat also felt the impact of the European troubles, tumbling to the lowest price in seven months. Shadow of the European debt crisis looms over markets, curbing demand for commodities. July futures for wheat delivery slid $0.0625 (1.3 percent) to $4.6125 per bushel as of 10:02 on CBoT.

Another victim of the sovereign-debt crisis in the European Union was copper, which fell today. Economists think that the industrial metal shouldn’t fall further and will be supported by demand from China. Three-month futures for copper fell 1.7 percent to $6,794 a ton at 12:07 on the LME.

Copper futures rose on prospect of strong demand from China. Analysts say that global inventories are dwindling while demand from China remains stable, which may lead to a deficit of the metal. Inventories monitored by the Shanghai Futures Exchange decreased for a third straight week in spite of the fact that China imported 309,772 metric tons the previous month. July futures for copper delivery advanced $0.1165 (4 percent) to $3.061 a pound as of May 21 on COMEX.

Gold futures jumped after the euro’s decline boosted demand for the precious metal as a safe haven. The Bank of Spain took over the savings bank CajaSur after it was harmed by property-loan defaults. This caused doubts about resilience of the European banking system, which led to the euro’s weakness. June futures for gold delivery climbed $15.10 to $1,191.20 per ounce by 11:34 on COMEX in New York.

Cotton halted its rally and dropped today after Euro-zone debt crisis caused commodity prices to decline. Prices were also influenced by the stronger dollar as it curbed exports from the U.S., making U.S. goods too expensive to overseas buyers. Economists weren’t concerned by this move of prices as they consider such correction after rally quite normal. July delivery for cotton dropped $0.0106 (1.3 percent) to $0.8222 per pound as of 10:09 on ICE.

Copper prices went down after the dollar was boosted by troubles in the European Union. China tries to slow down growth of its economy, lowering demand for copper. Inventories of LME-monitored copper rose 3.3 percent today on speculation that prices dropped too much this month while stockpiles of the metal are dwindling. July futures for copper delivery went down $0.0465 (1.6 percent) to $2.913 per pound by 10:43 on the COMEX in New York.

Wheat slid today for the sixth straight session after favorable weather improved forecasts for winter varieties of the crop in the U.S. The southern U.S. Great Plains have got as much as six times the normal precipitation the last week, causing expectations of an increased yield. July futures for wheat delivery slid $0.015 (0.3 percent) to $4.6625 per bushel as of 10:29 on the Chicago Board of Trade.

Platinum and palladium dropped today as concerns about impact of Germany’s ban of some bearish assets on the European economy caused speculation that demand for metals may fall. The Germany prohibited naked short sales for 10 banks and insurers and naked credit-default swaps on government bonds of the Euro-zone, causing volatility and panic on markets. Fundamentals look good for the metals, though, and long-term outlook remains favorable despite some short-term pessimism. Immediate delivery for platinum fell $74 (4.4 percent) to $1,599.50 per ounce by 15:31 in London. Palladium dropped $41.30 (8.3 percent) to $457.70 per ounce.

Corn, soybeans and wheat fell on prospect for a lower demand as a debt crisis in the European Union causes nations of the region to cut spending and China attempts to rein its economic growth. The favorable weather in the U.S. promises high supplies after next harvest, also affecting prices. July delivery for corn futures dropped $0.07 (1.9 percent) to $3.56 a bushel on the Chicago Board of Trade. July futures for soybean delivery fell $0.125 (1.3 percent) to $9.41 a bushel on CBoT. July futures for wheat delivery subtracted $0.025 (0.5 percent) to $4.69 a bushel.

Dollar’s rally curbed demand for commodities, including cattle, hogs and sugar. Hogs also fell on speculation that record prices for wholesale pork will cut retail sales. Analysts say that demand for sugar is strong and should support prices for the commodity. August futures for cattle delivery slid $0.00525 (0.6 percent) to $0.91475 pound by 11:53 on the Chicago Mercantile Exchange. July futures for hog settlement lost %0.01225 (1.5 percent) to $0.826 per pound on CME. July delivery for raw sugar went down $0.0024 (1.7 percent) to $0.1389 on ICE Futures U.S. in New York.

Corn slipped as the dollar rose, decreasing appeal of commodities as a hedge against inflation. Corn prices also dropped on speculation that the debt crisis in the European Union will curb demand for animal feed and fuel made from the crop. July delivery for corn futures slipped $0.065 (1.7 percent) to $3.665 per bushel by 9:41 on the Chicago Board of Trade.

Cattle futures and hogs fell on concern that a dollar’s appreciation may hurt U.S. meat exports, making commodities more expensive to overseas buyers. August delivery for cattle futures dropped $0.0085 (0.9 percent) to $0.938 per pound as of 9:52 on CME. July futures for hog settlement fell $0.003 (0.4 percent) to $0.8495 per pound.

Soybeans slid after a report that demand from U.S. processors unexpectedly fell in April. Consumption declined 12 percent to 131.7 million bushels from the near-record high level in March. July futures for soybean delivery retreated $0.085 (0.9 percent) to $9.56 per bushel at 10:26 on CBoT.

Corn futures dropped today after forecast that U.S. corn stockpiles may reach a highest level in five years. Reserve supplies will increase 4.6 percent to 1.818 billion bushels (45.9 million metric tons). July futures for corn delivery slipped $0.015 (0.4 percent) to $3.705 per bushel yesterday on CBoT.

Orange-juice continues to rise on outlook for low fruit supplies from Brazil and Florida. The output in Brazil will total 286 million boxes in the states of Sao Paulo, Minas Gerais and Parana; while Florida expected to produce 131.6 million boxes in the harvest that ends in July. July delivery for orange juice advanced $0.035 (2.5 percent) to $1.4155 per pound as of 10:52 on ICE.

Copper prices fell today for a first time in three sessions on speculation that demand from Europe and China will go down as an economic growth will slow. Increasing inflation may prompt China to cool its economy and European problems aren’t expected to go away even after the unprecedented loan package. July futures for copper delivery slid $0.0315 (1 percent) to $3.1965 per pound by 11:45 on the COMEX in New York.

European Union’s policy makers announced the €750 billion ($960 billion) lending package to help indebted countries of the region which fueled optimism for copper, casing the industrial metal to gain, and curbed demand for gold as an alternative to euro, causing the precious metal to fall. Analysts say that demand for copper will be increasing in developed countries as well as emerging markets. As for gold, definitely not all experts are sure that European woes will end soon and demand for the precious metal still may return. Actually, many traders think it’s a very good time to buy gold now, while prices are falling. July futures for copper delivery rose $0.0835 (2.7 percent) to $3.228 per pound on the Comex in New York. June futures for gold delivery dropped $9.60 (0.8 percent) to $1,200.80 per ounce on the Comex.

Wheat prices dropped on speculation that favorable weather may result in increasing supplies from the U.S. Global stockpiles may reach as much as 195.8 million metric tons on May 31st, 19 percent up compared to the previous year. July futures for wheat delivery slid $0.07 (1.4 percent) to $5.03 per bushel by 10:07 on CBoT.