Commodity Blog

Posts Tagged ‘import’

Corn and soybeans gained today on the speculation that the recent slump of the price will spur demand from makers of food and fuel. Prices for cattle and hogs jumped this year, potentially prompting farmers to increase their herds and to buy more animal feed as a result. The drought in Argentina can reduce supply, further boosting the agricultural commodity. On the other hand, forecasters say that the drought in Brazil may soon end and that can reduce the impact of lower supply from Argentina.

Corn was up from $5.8000 to $5.8575 per bushel on CBoT today, following the intraday drop to $5.7000 per bushel. Soybean price advanced from $11.2550 to $11.3000 per bushel today after falling earlier to $11.2025 per bushel.

Wheat was a different story as it declined on the forecast that the demand will decrease, while stockpiles will grow, yet the crop was also trying to erase its losses by the end of the trading session. Economists expect China to reduce its wheat import as the nation’s economy is slowing. Market forecasters predict that the report of the US Department of Agriculture on December 9 will show that the global wheat inventories rose 202.89 million tons, compared to the November estimate of 202.6 million tons.

Wheat closed at $5.9775 per bushel on CBoT down from the opening price of $6.0050, but significantly above the daily low of $5.8825.

The developments in the global economy continue to put downward pressure on commodities. As a result, soybeans touched the lowest level in 13 months today, while iron ore is expected to follow other commodities in decline.

The members of the US congressional debt-reducing supercommittee failed to reach agreement about budget cuts. Germany’s Finance Ministry admitted that the country’s economic growth became “noticeably slower”.

China may increase its imports of soybeans, supporting prices, but for now the negative fundamentals have upper hand. As for iron ore, even China isn’t going to support the commodity as demand in the Asian nation wanes.

Soybean settlement was at $11.5025 per bushel as of 9:24 GMT today on CBoT after falling yesterday from $11.7100 to $11.4575 per bushel and touching today $11.4100 per bushel — the lowest level since October 8, 2010.

Spot price for ore climbed to $147.40 per metric ton yesterday. Prices were up 24 percent this month, while ore dropped 31 percent in October and analysts predict it’ll resume its decline next month.

Crude oil and copper declined, while gold rose above $1550 per ounce, on concerns about the debt crisis in the European Union. The speculation that China will take additional measures to stem inflation also affected markets.

Worries about Greece still haunts markets, but now attention is turning to Italy. The country may require a bailout too, and some economists say that the EU would be required to double the size of its rescue fund to help Italy.

Crude dropped further as China’s oil imports dropped 10 percent in June to the lowest level in eight months.

August futures for delivery of gold gained $7.60 (0.5 percent) to $1,549.20 as of 13:40 on COMEX after reaching earlier $1,557.60, the highest price since June 22. Futures for delivery of copper in September dropped $0.044 (1 percent) to $4.368 by 13:12, posting the biggest drop since June 27. August futures for delivery of crude oil subtracted $1.05 to $95.15 per barrel on NYMEX, the lowest level since July 1.

Copper declined to the lowest level in three months as imports in China fell and on the speculation that the global demand may weaken. China’s imports of copper and related products went down in February 35 percent from a month earlier to the lowest level in more than two years. May futures for copper delivery retreated $0.0435 (1 percent) to $4.169 per pound at 10:18 on COMEX.

Gold fell today as the high prices prompted the sell-off by investors. The precious metal, which rose earlier on the surging fuel prices, also declined as oil weakened. April futures for gold delivery slipped $23 (1.6 percent) to $1,406.60 by 10:51 on COMEX.

Oil dropped today to the lowest level in almost four months on concern that the global economic growth is slowing. Initial unemployment claims in the US increased from 371,000 to 397,000 last week. Moody’s Investors Service downgraded Spain’s credit rating to Aa2. April delivery for crude oil fell as much as $3.33 (3.2 percent) to $101.05 per barrel as of 10:53 on NYMEX.

Soybeans gained on the concern that rains in Brazil may cause flooding, slowing the harvest and harming the quality of the crops. World inventories of soybeans are expected to decline to 58.2 million metric ton, the lowest level in two years, according to the estimates of the US Department of Agriculture. May delivery for soybeans rose $0.14 (1 percent) to $13.8925 per bushel at 13:09 on CBoT.

Copper fell on the concern that the surging oil prices will slow the global economic recovery, diminishing demand for the industrial metal. Oil continues its rally on the tensions in Libya. May futures for copper delivery fell $0.0115 (0.3 percent) to $4.498 per pound by 13:22 on COMEX.

Cotton jumped on the speculation that supply will trail demand. The Chinese imports surged 31 percent January from a year ago, following the jump by 86 percent in the previous year, while the output in the country fell by 6.3 percent in 2010. May delivery for cotton gained by the exchange limit of $0.07 (3.6 percent) to $2.006 as of 14:55 on ICE.

Rice climbed as governments increased their stockpiles to prevent surge of the prices for food, like the one that caused the protest in North Africa and Middle East. Japan purchased 68,000 metric tons of rice from the US, Australia and Thailand. Bangladesh, the largest consumer in South Asia, is seeking supply from India to boost food security. May delivery for rice gained $0.5 (3.6 percent) to $14.31 per 100 pounds as of 11:45 on CBoT.

Gold and silver retreated after the longest rally since August. The uncertainty caused by the tensions in North Africa and Middle East, which boosted the prices for the precious metals, persists and the metals declined most likely because traders took profit from the high prices. The upward momentum remains in place and the prices will likely continue to rise in the future. April futures for gold delivery dropped $6.50 (0.5 percent) to $1,409.30 per ounce by 13:43 on COMEX.

Crude oil fell as rising numbers of jobless claims in the US caused concerns that demand for a fuel may wane. Claims for unemployment benefits rose from 403,000 to 454,000 in the US last week. Oil also weakened as the US crude oil inventories increased by 4.8 million, while they were expected to increase by only 0.9 million. March delivery for crude oil dropped $0.47 (0.6 percent) to $85.17 per barrel on NYMEX. So far, prices were down 6.6 percent this year.

Cotton futures jumped to the record as supply struggles to catch up demand from China. China imported 2.84 million metric tons last year, the most since the record of 3.47 million tons in 2006. March delivery for cotton rose as much as $0.0256 (1.5 percent) to $1.6939 per pound on ICE by 14:58, following the previous jump to the record $1.7283 per pound. Prices have more than doubled in the last year.

Gold futures dropped to the lowest level in three months as demand for safety among investors began to wane. Analysts are talking about possibility of an interest rates increase in the European Union and even in the US. February futures for gold delivery dropped $12.20 (0.9 percent) to $1,332.30 per ounce by 13:42 on COMEX. The precious metal lost 6.3 percent this month.

China may reduce copper imports and increase consumption of scrap because of record high prices. Chinese import may fall by 4.5 percent to 2.75 million metric tons in 2011 from 2.88 million tons in the previous year. Imports declined 7.4 percent last year. The metal dropped 4 percent from the record $9,781 a metric ton on January 19th.

Oil extended its rally for the fourth day as US stockpiles of crude decreased more than expected. Energy Department reported that crude oil inventories declined 2.15 million barrels to 333.1 million last week, compared to the expected decrease by 1.4 million barrels. The February contract for crude gained $0.3 (0.3 percent) to $92.16 per barrel on NYMEX.

Gold rallied on the signs of increasing imports in India. Ajay Mitra, the managing director for India and the Middle East at the World Gold Council, informed that India’s imports possibly have increased to 800 metric tons from 557 tons in 2009, exceeding its previous record. Spot price for gold was $1,381.90 per ounce in Mumbai yesterday.

Cattle futures reached the record and hogs rose to the highest level in eight months on the speculation that increasing feed costs will force farmers to cut supplies. Corn, the main ingredient in livestock feed, jumped to the highest price in 29 months as the government forecast for US stockpiles worsened. February futures for delivery cattle advanced $0.0175 (1.6 percent) to $1.102 per pound by 13:11 on CME. April futures for hog delivery rose $0.01875 (2.2 percent) to $0.87025 per pound.

Corn and soybeans gained today as unfavorable weather may reduce output in Argentina and Brazil. Rains missed some important regions in the South African countries and now forecasts promise dry weather and high temperatures, which may harm crops. March futures for corn delivery gained $0.12 cents (2 percent) to $6.07 per bushel as of 13:15 on CBoT. March futures for soybean delivery went up $0.155 (1.1 percent) to $13.805 per bushel.

Copper extended its decline today on the speculation that demand in China may drop. Chinese copper imports fell 2 percent in September, following the 29 percent jump in November. March futures for copper delivery dropped $0.018 (0.4 percent) to $4.2645 per pound by 13:16 on COMEX.

Gold and silver rallied today as concerns about potential spreading of the European debt crisis strengthened. Costs of insuring Portugal’s and Spain’s debt against a default jumped to the record ahead of the planned bond sales. February futures for gold delivery climbed $5.20 (0.4 percent) to $1,374.10 per ounce at 13:55 on COMEX. March futures for silver delivery rose $0.19 (0.7 percent) to $28.861 per ounce.