Posts Tagged ‘National Weather Service’
Crude Jumps on Fear of Storm, Copper Fells on China’s PMI
Crude oil jumped to the highest level in four weeks today in New York as energy companies evacuate platforms from the Gulf of Mexico on forecast that a storm may develop in that area. The National Weather Service increased probability that a tropical storm will develop in the area in the next two days from 60 percent to 80 percent chance today. Worries about potential disruption of oil supplies made prices surge. October futures for delivery of crude oil rose $0.12 to $88.93 per barrel on NYMEX, the highest settlement prices since August 3. October futures for Brent crude fell $0.56 (0.5 percent) to $114.29 per barrel on ICE.
Copper fell as manufacturing in China, the biggest consumer of the metal in the world, expanded less than predicted. China’s Purchasing Managers’ Index, according to the China Federation of Logistics and Purchasing, was at 50.9 in August, while forecasters promised it to be at 51.2. Traders become concerned as manufacturing in Asia and Europe slows. Futures for delivery of copper in December fell $0.044 (1 percent) to $4.1605 per pound by 13:00 on COMEX.
Gold Retreats from Record, Sugar Falls & Soybeans Gain
Soybeans extended the longest rally since August on concerns that adverse weather may hurt crops in the US. The National Weather Service predicted that temperatures will be 12 degrees Fahrenheit above normal for five days starting July 16 in the Midwest. November futures for delivery of soybeans added $0.02 cents (0.1 percent) to $13.8175 per bushel at 10:30 on CBoT.
Gold retreated from the record as Federal Reserve Chairman Ben Bernanke spoke today, indicating that the Fed won’t add more stimulus for the US economy. Earlier the precious metal jumped to a record as Fitch Ratings downgraded Greece’s credit rating. August futures for delivery of gold gained $4.10 (0.3 percent) to $1,589.60 as of 12:46 on COMEX after reaching the
Sugar posted a biggest drop in eight weeks today on the forecast that production in Brazil will be bigger than previously estimated. Prices climbed 24 percent in the last month on concerns about output. October futures for delivery of raw sugar slumped as much as 0.0122 (4 percent) to $0.2902 per pound by 14:00 on ICE, posting the biggest drop since May 19. Yesterday, the price reached the highest level in five months of 0.3133 cents.
Hot Weather Spurs Cattle Prices
October cattle futures rose to the highest level in more than 8 weeks today as the speculations that the extremely hot weather will impact the amount of beef produced by the farmers.
First of all, the unusually hot summer has already killed some animals in U.S, as reported by the Kansas Livestock Association (KLA). Second, the current heat levels threaten the weight gains of the living cattle, decreasing the amount of useful meat extracted by the farms. Meanwhile National Weather Service predicts further increase of the temperature in the states that are the major producers of the commodity.
According to the reports by KLA the cattle deaths due to heat started to occur since about July 16, while the number of such deaths isn’t report. Rich Nelson of Allendale Inc. commented on the current situation:
There were those limited deaths in Kansas, but the bigger deal is the impact on potential weight gains for cattle in the feedlots.
Cattle futures contracts with delivery in October rose from $0.94500 to $0.94875 (or about 0.4 percent) as of 16:09 GMT today on the CME after reaching as high as $0.95025 during early trading session.