Commodity Blog

Posts Tagged ‘grain’

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.

Crude oil gained after the report that the U.S. economy improved at the fastest pace in six years, suggesting that demand may increase. Oil rose as much as 1.6 percent as U.S. gross domestic product went up 5.7 percent in the fourth quarter, the best performance since the third quarter of 2003. March delivery for crude oil added $0.71 (1 percent) to $74.35 per barrel as of 10:10 the New York Mercantile Exchange.

Wheat futures slid as the stronger dollar made supplies from the U.S., the largest producer of the grain in the world, less appealing to overseas buyers. The dollar gained 0.5 percent versus the basket of six major currencies. March futures for wheat delivery lost $0.045 (0.9 percent) to $4.825 per bushel at 10:20 on CBoT.

Gold fell in London as the dollar gained, decreasing the metal’s attractiveness as an alternative store of value. The dollar rose on concern that demand for European assets will decrease with Greece’s fiscal problems spreading further, while the U.S. economy advanced more than expected last quarter. Immediate delivery for gold slipped $8.17 (0.8 percent) to $1,078.93 per ounce by 15:17.

Wheat dropped to the weekly low on expectation that U.S. President’s plan to limit risk-taking by banks will cut investment in commodities, including U.S. grain. Barack Obama may announce further details of his plan to restrict proprietary trading or investing in hedge funds and private-equity funds. March futures for wheat delivery decreased $0.045 (1 percent) to $4.8925 per bushel as of 10:08 on CBoT.

Crude oil and gasoline tumbled to the lowest level in five weeks after the report that stockpiles of the motor fuel climbed to a 22-month high. Demand for fuel fell 2 percent compared to the previous year in the four weeks ended January 22nd. Gasoline consumption dropped 0.4 percent from the previous week. Refineries worked at 78.5 percent of capacity. March delivery for crude oil slid $1.05 (1.4 percent) to $73.66 per barrel by the 14:30 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.

Wheat futures slid for the third day as demand for U.S. grain waned because of increasing global inventories. Analysts predict that prices likely will be constrained in the coming six months as growing global supplies cause lack of demand for U.S. wheat. March futures for wheat delivery slid $0.055 (0.9 percent) to $5.785 per bushel as of 10:37 on CBoT.

Gold prices jumped on expectation that the dollar will fall, raising demand for the metal as an inflation hedge. The greenback reached a lowest level in 15 months versus a basket of six major currencies on November 16th. But the U.S. currency gained today as much as 0.8 percent. December futures for gold delivery added $2.30 (0.2 percent) to $1,144.20 by 12:33 on the Comex division of the New York Mercantile Exchange.

Wheat gained because of worries that dry weather will cause decline in production of Australia, the fourth- biggest exporter of the grain in the world. El Nino climate pattern causes abnormal weather that may curb grain yield. Australian growers may harvest 23 million metric tons in the year ending on May 31 compared to 21.5 million tons in the previous year. December futures for wheat delivery gained $0.0775 (1.6 percent) to $5.065 per bushel as of 10:04 on CBoT.

Gold dropped as result of a rebound in the dollar and decline of oil reducing attractiveness of the precious metal as a hedge against inflation. The dollar climbed after reports from U.S. about increase in the sales of new houses and rising orders for goods. December delivery for gold futures fell $0.9 (0.1 percent) to $945.10 per ounce by 13:05 on the New York Mercantile Exchange’s Comex division.

Argentine farmers are going to halt grain and beef sales after the government vetoed a law about tax breaks to Buenos Aires growers experiencing the worst drought in a century. The government claimed that it vetoed parts of the bill because of concern that farmers would claim their goods came from drought- afflicted areas of Buenos Aires to evade taxes. Argentine farmers harvested 13.2 million tons of corn this year compared to 22 million tons harvested previous year.

Western Australia, the nation’s biggest grain-growing region, may produce less grain from the current crop than a year earlier, in part as dry weather stymies yield potential.

Output of all grains may be 10 million metric tons to 12 million tons, the state’s Department of Agriculture and Food said today in a report on its Web site. Production from the previous harvest was 13.6 million tons, according to data from the Australian Bureau of Agricultural and Resource Economics.

“A late start and below-average rainfall through the April-June period has contributed to lower-than-normal crop potentials through much of the central and north-eastern wheat belt,” the department said. “Whilst most of the wheat belt has had good rain in late June to establish crops, some areas in the central wheat belt are still waiting for falls.”

Wheat is the state’s biggest crop. Grain growers in Australia, the world’s fourth-largest wheat exporter, harvest their current crops starting from about November.