Commodity Blog

Posts Tagged ‘hogs’

Gold reached the highest price in more than a week as the weakening dollar increases the attractiveness of the precious metal as an inflation hedge. The dollar declined 0.5 percent against a basket of six major currencies. “The fundamentals are clearly bullish for gold,” said Chip Hanlon, the president of Delta Global Advisors. December futures for gold delivery jumped $13.50 (1.3 percent) to $1,017.80 per ounce on the New York Mercantile Exchange’s Comex division.

Corn gained on speculation that cold weather in the U.S. Midwest may damage harvest. About 6 percent of the corn was harvested by September 27th. Corn prices declined earlier on expectations of record crop. December futures for corn delivery gained $0.08 (2.4 percent) to $3.415 per bushel on CBoT.

Hogs tumbled to a five-week low as increasing production and decreasing prices indicating that supplies may exceed demand. More than 2.3 million hogs was slaughtered a week for three straight weeks. Average hog weight reached 92 kilograms on October 1st, up 1.5 percent from a previous year, signaling higher pork output. December futures for hog settlement slid $0.0095 (2 percent) to $0.476 per pound on CME.

White sugar dropped to two-week low in London as prices tumbled in New York yesterday, signaling slowing demand. Prices also fell after the dollar rebounded, decreasing the attractiveness of commodities as a hedge against inflation. December delivery for white sugar dropped $13.10 (2.2 percent) to $571.40 per ton on the Liffe exchange.

Corn futures gained for a third day because of forecast that frost, expected next week in some parts of the northern Midwest, may reduce the size and quality of the crop in the U.S., the largest grower and exporter in the world. Crop loss may reach 13.2 billion bushels. December futures for corn delivery gained $0.0575 (1.7 percent) to $3.36 per bushel as of 11:37 on CBoT.

Hog futures slumped as U.S. pork prices declined on speculation that meat production may not be decreased enough to cope with dropping demand. Combination of low exports and domestic demand makes the pork market weak. The swine flu also discouraged people from buying pork. December settlement for hog futures slumped $0.0045 (0.9 percent) to $0.496 per pound by 12:22 on the Chicago Mercantile Exchange.

Copper prices dropped as inventories reached a four-month high, causing concern that demand is falling. Other reasons for price decline are stronger dollar, decreasing appeal of the metal as an alternative investment, and slower imports in China. December delivery for copper dropped $0.0565 (2 percent) to $2.808 per pound on the New York Mercantile Exchange’s Comex division.

U.S. hog farmers may cut their breeding herds to the lowest level since 1988 as two years of losses forced more operations to shrink or go out of business. Demand for pork declined significantly, yet farmers are slow to cut supplies as they have about $3,000 invested in every sow they own. The December contract for wholesale pork gained $0.0095 (1.9 percent) to $0.497 per pound by 10:40 on the CME.

Soybean processing in U.S. declined 7.4 percent last month from a year earlier with lower demand for animal feed and vegetable oil and inventories, shrinking from July levels. U.S. feed consumption slowed as beef, pork and dairy producers reduced herds to decrease losses. Farmers are selling dairy cows for slaughter after the government forecast that milk prices will fall 34 percent in 2009. November futures for soybean declined $0.235 (2.5 percent) to $9.03 per bushel on September 11th on CBoT.

Hog futures slid to the two-weeks lowest and cattle dropped on speculation that China, the second-biggest buyer of U.S. chicken meat and pork last year, will halt imports of U.S. poultry. In this case more meat will be left on the U.S. market to compete with pork and beef. China said yesterday it will begin probes of alleged dumping and subsidies for U.S. chicken and auto products; today China filed a complaint to the World Trade Organization about U.S. President’s decision to impose a 35 percent tariff on Chinese tires. December futures for hogs slid $0.01075 (2.2 percent) to $0.4875 per pound by 11:36 on the Chicago Mercantile Exchange. December futures for cattle dropped $0.00325 (0.4 percent) to $0.866 per pound.

Hogs jumped to 2-months high on speculation that bacon demand is rising with restoration of the U.S. economy. Retailers may increase purchases. December settlement for hog futures gained $0.018 (3.6 percent) to $0.5145 per pound as of 10:40 on CME.

Crude oil gained as the International Energy Agency increased its forecast for global demand in 2010 and a government report showed that U.S. stockpiles declined. World oil demand is likely to reach 85.7 million barrels a day next year, 450,000 barrels a day more than estimated in August. U.S. crude-oil stockpiles decreased 5.91 million barrels to 337.5 million last week. Expectations are based on stronger North American and Chinese demand. Crude oil for October delivery advanced $0.38 (0.5 percent) to $71.69 per barrel by 13:01 on the New York Mercantile Exchange.

Lead slid to 11-months low in London after a report that production in China will exceed local demand this year. China, the biggest lead producer and consumer in a world, will have a 2.87 million-metric-ton surplus. Lead for three-month delivery declined $289.50 (12 percent) to $2,115.50 per metric ton on LME at 17:18.

Texas may be relieved from drought by El Nino. The worst drought in Texas for 90 years causing concerns for crop harvest may be ended by the return of an El Nino climate pattern to the Pacific Ocean, characterized by warming waters. Damage to orange groves in Florida by hurricanes can also be reduced. The concern for harvest of U.S. crops caused cotton to gain a 10-month high on July 21 on ICE Futures U.S. in New York, while prices for orange-juice have increased 39 percent this year.

Hogs decline as heavy animals may cause glut. Hog producers are trying to make money by overfeeding hogs and this cause concern about a pork glut leading to drop in hog futures. October futures for hog dropped $0.0055 (1 percent) to $0.5215 per pound by 9:48 on the Chicago Mercantile Exchange.

The world’s largest mining company, BHP Billiton Ltd., agreed to sell 30 percent of its iron ore under new pricing system putting an end for tradition of settling annual contracts in Asia. The ore will be sold through a mix of cash, quarterly and indexed pricing. BHP dropped 1.6 percent to $37.43 as of the 16:10 Sydney time close on the Australian stock exchange.

Beef demand falls, hogs slump today. Cattle futures dropped the most in seven weeks resulting in concern that beef demand is wane as the recession continues while hogs fell to the lowest since February. October futures for cattle dropped $0.01025 (1.1 percent) to $0.901/pound by 10:42 on CME.

Supply concerns rise causing sugar gain today. Demand in the world will surpass production resulting in concern that the worldwide supply deficit will increase. October futures for raw-sugar gain $0.0007 (0.4 percent) to $0.1787/pound as of 12:04 on ICE Futures  U. S. in New York.

The falling dollar increased the attractiveness of precious metals as an alternative investment causing gold to go up today. Federal Reserve Chairman Ben S. Bernanke reimplemented a plan to keep benchmark U.S. lending rates at historic lows for a continuous period. August futures for gold increased $5.50 (0.6 percent) to $952.40/ounce at 12:39 on the New York Mercantile Exchange’s Comex division.

Wholesale pork surged 5.5 percent to $0.6333 a pound during yesterday’s trading session, as the corporate meatpackers (such as Tyson Foods Inc.) decreased their slaughter rates to spur the price growth. Hogs futures reacted with an up-movement as the demand for hogs may also increase with the profits of the companies. October hog futures rose by $0.00975, which is 1.6 percent, to $0.60075 a pound as of 11:32 on CME.

Platinum gains as the metals get into the focus of the investment banks and hedge funds. The gain was noticeable mainly in the industry-applicable metals such as platinum and palladium. Goldman Sachs recommends buying January platinum futures because auto-production may rise soon. October futures on platinum rose by $13.90, or 1.2 percent, to $1,171.80 per ounce as of 12:38 on NYMEX.

Copper prices remain mostly unchanged during the trading session in New York as the commodity optimism may be coming to an end. September copper futures declined by $0.004 to $2.388 per pound as of 13:03 on the Comex division of the New York Mercantile Exchange.