Commodity Blog

Posts Tagged ‘pork’

Hogs futures slipped today on forecast that high US pork prices may diminish retail demand. Meatpackers shipped 9.215 million pounds of pork last week, the worst week since late June. October futures for hog settlement slid $0.003 (0.4 percent) to $0.793 per pound at 9:42 on CME.

Raw sugar experienced a strongest decrease in almost two moths on speculation that supplies from Brazil and India, the world’s largest producers, would increase, erasing the global deficit. Production in Brazil’s Center South increased by 26 percent in the first half of July, while cane planting in India was boosted by rains, which were 2.5 percent above the 50-year average in July. October delivery for raw sugar slumped $0.0079 (4.1 percent) to $0.1861 per pound by 9:45 on ICE.

Coffee futures dropped the most in two weeks on speculation that the commodity rallied too much, considering the anticipated high supplies from Brazil, the biggest producer. Global coffee production may grow 12 percent to 135 million bags in the year starting October 1st. September delivery for Arabica coffee slid $0.0475 (2.8 percent) to $1.6775 per pound as of 10:04 on ICE.

Cocoa futures gained today after the report about increased demand in North America. The cocoa grind increased by 12 percent in the second quarter to 117,657 metric tons compared to the previous year. Analysts say that grinding numbers show strong demand and support prices. September delivery for cocoa rose $21 (0.7 percent) to $3,165 per ton on ICE.

Hogs futures went up today as hot weather in the U.S. causes decrease of animals’ weight, causing concern about declining pork supply. The animals tend to eat less with such jot weather, decreasing their weight. Hogs purchased yesterday by pork processors weighed 2 kilograms (4.44 pounds) compared to the same day in the previous month. October futures for hog settlement gained $0.00375 (0.5 percent) to $0.757 per pound on the CME.

Corn, soybeans and wheat declined after the nonfarm payrolls showed the lower number of new employees hired than was expected, causing concern that demand for the crops would fall. The nonfarm payroll employment grew by 431,000 in May, compared with the estimated increase of 521,000. July futures for corn delivery dropped $0.04 (1.1 percent) to $3.455 per bushel as of 10:05 on the Chicago Board of Trade. July futures for soybean delivery went down $0.1175 (1.2 percent) to $9.4325 per bushel on CBoT. July futures for wheat delivery subtracted $0.0225 (0.5 percent) to $4.395.

Sugar rose on speculation that buyers will increase purchases to restock their inventories, which waned after two year of the global deficit. India, the largest sugar buyer in the world, may import 1 million tons before the end of September. July delivery for raw sugar rose $0.007 (5 percent) to $0.1469 per pound at 10:15 on ICE Futures U.S.

Hog and cattle futures slipped as the stronger dollar caused concern that demand for U.S. pork and beef will decline. The dollar gained to the highest level in 14 months against the basket of six major currencies, making U.S. exports more expensive for oversees buyers. July futures for hog settlement slid $0.01475 (1.8 percent) to $0.8015 per pound by 11:53 on the Chicago Mercantile Exchange. August futures for cattle delivery fell $0.0125 (1.4 percent) to $0.88875 per pound.

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.

Wheat slid to the lowest level in two weeks on expectations that stored grain will be made available to processors and shippers as U.S. farmers prepare to harvest this year’s crop. This change can be considered a seasonal move caused by a forthcoming harvest. July futures for wheat delivery slid $0.07 (1.4 percent) to $4.845 per bushel as of 10:33 on CBoT.

Hogs dropped today amid concerns that demand will fall after U.S. wholesale pork prices jumped to the highest level in 21 months. Wholesale pork price reached $0.913 per pound yesterday, the highest level since August 2008. June settlement for hog futures dropped $0.008 (0.9 percent) to $0.8485 per pound by 11:28 on the Chicago Mercantile Exchange.

Corn slipped today as declining oil prices diminished demand for the grain used in production of ethanol and U.S. farmers started sales of stockpiles left from the record harvest of the previous year. The prices were also cut by speculations that China’s demand of the U.S. corn was exaggerated. July futures for corn delivery slipped $0.0425 (1.1 percent) to $3.74 per bushel at 12:59 on CBoT.

Hog futures slipped after wholesale pork prices climbed to the highest level since 2008, causing U.S. retail demand to fall. The falling demand made traders unwilling to buy the commodity for the record prices. Meat packers’ shipments of pork dropped 7.1 million pounds in the first three days of this week, that’s 7.2 percent down from the same period in the previous week. June settlement for hog futures slid $0.00575 (0.7 percent) to $0.865 per pound as of 9:34 on CME.

Sugar prices dropped as a speculation that an output will rise encouraged importers to halt their purchases. Traders cut their purchases in an anticipation of lower prices. Egypt scraped a plan to purchase 50,000 metric tons of the sweetener and another tender isn’t expected for at least two weeks. July delivery for raw sugar dropped $0.0032 (1.9 percent) to $0.1637 per pound by 11:07 on ICE Futures U.S.

Hog futures gained today on the speculation that the supply of animals isn’t enough to meet the rising demand for pork. The grilling season is approaching, yet the supplies of the U.S. meat-packers are dwindling. The reason for this undersupply is the cuts of the breeding herds, made by the U.S. farmers to lower the losses because of the high feed costs and the recession. June futures for hog settlement gained $0.00675 (0.8 percent) to $0.8465 per pound by 9:53 on the Chicago Mercantile Exchange.

Wheat prices advanced for the second day after the speculators unwind bets for the falling price as the grain hasn’t fell below the key technical indicators. Some speculative investors, who had sold contracts in a bet on lower prices, have started buying back futures to liquidate positions. The price went up after wheat hasn’t continued its drop below the 10-day moving average of $4.7625 per bushel. July futures for wheat delivery advanced $0.08 (1.7 percent) to $4.885 per bushel as of 10:28 on CBoT.

Crude oil fluctuated as the dollar fell, bolstering the demand for commodities as an alternative investment, and after a government report that the U.S. economy expanded less than predicted in the fourth quarter of 2009. The U.S. currency fell as much as 1.1 percent versus the euro. OPEC is planning to raise shipments by 1.7 percent in the month ending April 10th, signaling that demand in Asia stays high. May delivery for crude oil fell $0.14 to $80.39 per barrel as of 10:26 on NYMEX.

Hog futures slid on outlook for lower reductions of the U.S. breeding herd. U.S. hog farmers held back about 5.855 million sows for breeding by March 1st, that’s 2.3 percent down from a previous year. Reductions declined as farmers expect that profits may rebound after losses on slumping pork demand and high corn prices. June futures for hog settlement slid $0.00175 (0.2 percent) to $0.7945 per pound by 11:44 on the Chicago Mercantile Exchange.

Sugar dropped after the dollar gained, cutting appeal of some riskier assets. The greenback gained 0.7 percent versus a basket of six major currencies. The rising dollar puts some commodities under pressure. March futures for raw-sugar delivery slid $0.0014 (0.5 percent) to $0.2762 per pound as of 9:48 on ICE.

Hog futures reached the nine-months high as rising demand for the meat pushed the U.S. wholesale-pork prices to the record in 15 months. Wholesale pork climbed 8.4 percent to $0.7305 per pound yesterday, the highest level since October 2008. Analysts say that historical price patterns show the possibility for wholesale pork to reach $0.75 per pound before going down. April futures for hog settlement added $0.0065 (0.9 percent) to $0.734 per pound by 11:00 on the Chicago Mercantile Exchange.

Gold imports in India, the greatest buyer in the world, may wane in December because demand went down on high prices. Imports by India expected to fall to 30 metric tons, down from 32 metric tons in November. Analysts forecast that “demand will remain low until prices fall”. Bullion for immediate-delivery rose to $1,096.66 by 9:56 in Mumbai.

Analysts predict that retail-food prices in the U.S. will rise about 2 percent this year, curbed by declining production. The outlook for food inflation in 2010 is about 3.5 percent. Beef and veal prices dropped at a rate of 0.5 to 1.5 percent this year. Pork prices fell 1.5 to 2.5 percent. Prices for fruits and vegetables slid 1.5 to 2.5 percent this year.