Commodity Blog

Posts Tagged ‘Russia’

Wheat rose today to a monthly high on concerns that cold weather in Europe will hurt output. Temperatures in Ukraine may fall below 15 degree Fahrenheit, threatening crops, especially those not covered with snow. At the same time, Russia is considering a tax on exports.

Additionally, wheat was rising with other commodities on speculation that Greece is making progress in debt-reduction discussions. The European leaders agreed about sanctions on countries with high budget deficit.

Wheat price climbed from $6.4475 to $6.6625 per bushel as of 21:24 GMT today on CBoT after reaching $6.6750 — the highest since January 3.

Crude oil and gold, as well as other commodities, jumped after the Federal Reserve maintained interest rates near zero and pledged to keep borrowing costs record low at least till late 2014. Such move was considered a ”light” version of quantitative easing. It weakened the dollar and boosted commodities priced in the US currency. March for delivery of crude oil advanced $0.66 to $100.06 per barrel on NYMEX. Brent went higher from $110.45 to $110.74 per barrel on ICE today as of 6:41 GMT. Gold was up from $1,666.50 to $1,711.00 yesterday and traded at $1,710.80 today on COMEX.

Wheat was also higher on dwindling Russian stocks. Inventories of some Russian regions declined by more than 50 percent, while other regions shipped almost all of their supplies as exports picked up. Wheat climbed from $6.4075 to $6.4650 per bushel on CBoT today.

Wheat futures fell today as weather forecast improved prospects for US crops, while increasing output from Russia and Eastern Europe may decrease demand for US exports.

Harvest in the US was threatened by drought. Recent rains in parts of the Midwest eased concerns about the current harvest and planting of winter wheat.

The government newspaper Rossiyskaya Gazeta reported today that Russia may harvest more than 90 million metric tons of wheat. Wheat profited from the ban of exports by Russia last year, but as the nation ended the ban the grain is under pressure.

December settlement for wheat slipped $0.0425 (0.5 percent) to $7.9075 per bushel as of 13:15 on CBoT.

Crude oil headed to the fourth weekly gain on hopes that the US and Europe would be able to resolve their debt problems. The European leaders announced after the summit €159 billion to help Greece and accepted a temporary default for the nation to prevent the crisis from spreading. September futures for delivery crude oil gained $0.48 to $99.61 per barrel in electronic trading on NYMEX before trading at $99.43.

Copper fell to the lowest level in four weeks after the report showed that manufacturing in China, the biggest user of the metal in the world, slowed. China’s Flash Manufacturing PMI and Flash Manufacturing Output Index were at the lowest level in 28 months, according to HSBC Purchasing Managers’ Index Press Release. September futures for delivery of copper slid $0.0525 (1.2 percent) to $4.3835 as of 13:09 on COMEX, the biggest decline since June 23.

Wheat dropped as demand for the US exports declines, while exports from Russia grow. The US Department of Agriculture reported that US export sales declined 22 percent to 403,528 metric tons, the lowest since the end of May, in the week ended July 14 from a week ago. Russian agriculture minister claimed that the country may ship to foreign buyers as much as 18 million tons in the year that started July 1. September futures for delivery of wheat contracted $0.1975 (2.8 percent) to $6.7725 per bushel by 13:15 on CBoT, the biggest drop since June 30.

Wheat fell today on the speculation that importers would turn from US and European supplies to exports from Russia. First Deputy Prime Minister Viktor Zubkov said yesterday that Russia’s output may total 90 million metric tons this year, while exports would reach 1.5 million tons in July. Prime Minister Vladimir Putin predicted last month that production would total 85 million tons. September futures for delivery wheat dropped $0.0575 (0.8 percent) to $7.0125 per bushel at 13:15 on CBoT.

Gold capped the longest rally since November 2009 today on concerns about the debt problems in the US and Europe. Standard & Poor’s warned that it may cut the US credit rating. Eight banks failed the stress test of the European Union banks. August futures for gold delivery gained $0.8 to $1,590.10 as of 13:37 on COMEX, reaching a new all-time record.

Cocoa fell on the speculation that there will enough supply to satisfy demand. INTL Hencorp Futures LLC predicted that a global surplus of cocoa will be 156,000 metric tons by September. The strengthening dollar also had its negative impact on commodities, including cocoa and wheat. September delivery for cocoa tumbled as much as $89 (3 percent) to $2,886 per ton as of 12:01 on ICE, posting the biggest drop since May 5.

Supply of wheat is also expected to be ample and therefore prices went down. Russia plans to lift the ban on exports by July 1, while rainy weather should help the crops in Ukraine. The US Department of Agriculture increased its forecast for global inventories on June 9 to 184.26 million metric tons, up 1.7 percent from the forecast in the previous month. Futures for delivery of wheat in September sand $0.31 (4.2 percent) to $7.0825 per bushel by 13:15 on CBoT after it reached $7.0325, the lowest price since March 17.

Futures on wheat gained for the fist time in three sessions on forecast that the renewed Russia’s exports won’t be enough to satisfy demand. Supply of the commodity is likely to decline as adverse weather in the US and Europe may hurt crops. July contract for delivery of wheat went up $0.105 (1.4 percent) $7.6975 per bushel as of 13:15 on CBoT.

Gold decline as the rebound of the euro reduced demand for the precious metal as a safe haven. The European currency gained 1.3 percent after Germany’s Chancellor Angela Merkel said that her country is committed to the stability of the euro. Futures for delivery of gold in August slipped $10.50 (0.7 percent) to $1,532.70 by 13:38 on COMEX.

Crude oil advanced after the dollar fell as Moody’s Investor Service put the US credit rating on review for downgrade. The rating agency will cut the debt rating of the North American country if there would be no progress in increasing the debt limit. July futures for crude oil delivery traded at $100.40 per barrel on NYMEX following the fall by 1.8 percent to $98.46.

Futures on wheat slid today as the wet weather in Europe may boost crops, while Russia plans to lift its ban on exports. Rains improved prospects for harvest in Germany and may help crops in France this week. Russia, one of the biggest exporters of wheat in the world, will renew exports on July 1. July contract for wheat delivery slipped $0.23 (2.9 percent) to $7.5925 per bushel as of 13:15 on CBoT.

Rains in the US had opposite effect on corn, slowing planting and boosting the commodity. The government report said yesterday that 86 percent of the crop was planted by May 29, compared to the five-year average of 95 percent. Midwest had strongest rains and farmers of the region may decide to take insurance instead of planting. Futures on corn for delivery in July gained as much as $0.11 (1.5 percent) to $7.585 per bushel.

Crude oil weakened today as the conflict in Libya may end. The government said that it’ll cease all military actions and will talk with the rebels. April delivery for crude oil fell $0.35 to $101.07 per barrel on NYMEX.

Wheat rallied today as dry weather in various countries across the world may harm the crops. QT Weather predicted that temperature next week in parts of Kansas, the largest winter-wheat-growing state in the US, may rise as much as 14 degrees Celsius above the normal level for this time of year, and the drought will persist for the next two weeks. Russia’s Prime Minister Vladimir Putin said that the adverse weather may damage 5 million hectares (12.4 million acres) of the winter crops. May futures for wheat delivery gained $0.1275 (1.8 percent) to $7.23 per bushel as of 13:15 on CBoT.

Corn rose the most since October as adverse weather may slow planting in the US, the biggest grower and exporter in the world. Some areas of the country are threatened by flooding, while others suffer from drought. May futures for corn delivery went up $0.37 (5.7 percent) to $6.835 per bushel by 13:15 on CBoT.

Coffee gained today on concerns that stockpiles in Vietnam are running short and production in Columbia may dwindle. Vietnam, the largest grower of Robusta coffee, has less than 500,000 bags of unsold coffee before the new harvest, while inventories had somewhere between 2 million and 2.5 million bags in the same period last year. Output in Columbia, the second-largest producer of Arabica coffee in the world, may decrease in the next year because of excessive rains and a fungus that harms plants. January delivery for Robusta coffee rose $38 (2.3 percent) to $1,718 per metric ton as of 12:52 on NYSE Liffe. December delivery for Arabica coffee went up $0.006 (0.3 percent) to $1.862 per pound on ICE.

White sugar also rose today on speculation that Russia may increase its imports of the sweetener. Russia’s imports of raw sugar may jump as much as 300,000 tons before end of this year. December delivery for white sugar gained $2.70 (0.4 percent) to $698 per ton on NYSE Liffe.