Commodity Blog

Posts Tagged ‘wheat’

Hog futures jumped to a five-month high as declining U.S. pork inventories signaled that global demand for the meat may be growing. Despite extensive hog slaughter demand may rise occasionally and supplies may be not enough to meet it, analysts say. Pork inventories declined 1.5 percent from the previous year to 520.13 million pounds. February futures for hog settlement climbed $0.0165 (2.6 percent) to $0.66025 per pound by 11:11 on the Chicago Mercantile Exchange.

Wheat gained on expectation that a declining dollar will increase the demand for commodities as an inflation hedge and boost U.S. exports. Another reason for the rising price is concern that U.S. farmers will plant fewer winter wheat as rainfalls delayed the corn and soybeans harvests, lowering the amount of land available for wheat. March futures for wheat delivery gained $0.0975 (1.7 percent) to $5.905 per bushel at 11:46 on CBT.

Cotton reached a 16-month high after the weaker dollar spurred demand for the commodity. The declining dollar is pushing down the cost to overseas buyers for U.S. commodities. Holders of cotton are unwilling to deliver supplies against the December futures contract. March futures for cotton delivery added $0.0066 (0.9 percent) to $0.747 per pound as of 12:51 on ICE.

Coffee production in Colombia, the third-largest producer in the world, may jump 18 percent next year as warmer weather helps crops. Output may rise to 11 million bags with recovery from a slump after heavy rainfalls this year. Coffee has climbed 23 percent in New York this year as excess rains have hurt harvests in Colombia and Brazil.

Wheat stockpiles in the U.S. before the next harvest will exceed forecast with declining exports and falling global demand. Forecast for unsold supplies on May 31st is 864 million bushels, 16 percent up from a September forecast of 743 million and up from 657 million this year. December delivery for wheat gained $0.1075 (2.3 percent) to $4.74 per bushel on the Chicago Board of Trade.

Wheat slumped to the lowest this week as a rebound in the dollar causes demand for supplies from the U.S. to drop. The dollar jumped 0.7 percent against a basket of six major currencies. December futures for wheat delivery slid $0.0925 (2 percent) to $4.4825 per bushel by 10:32 on the Chicago Board of Trade.

Cotton prices dropped as the dollar gains, raising the cost to buyers using other currencies. Cotton rose previously because of heavy rains, threatening that rotting pods of fiber may reduce crop yields, and because farmers planted less cotton to grow more profitable grains and soybeans. December futures for cotton delivery fell $0.0112 (1.8 percent) to $0.6172 per pound as of 11:04 on ICE Futures U.S. in New York.

Wheat slumped to the lowest in three weeks because of lack of demand for supplies from the U.S., the world’s biggest exporter. While stockpiles of the grain were increasing, possibly climbing up 8.3 percent to 183.6 million metric tons by May 31, demand was declining. Overseas buyers are planning to buy 8.4 million metric tons of wheat from the U.S. in the period from June 1st through August 20th, which are 42 percent lower compared to the same period in the previous year, and actual shipments of the wheat have fallen 47 percent to 4.1 million tons since the start of the marketing year. December futures for wheat delivery dropped $0.1225 (2.5 percent) to $4.865 per bushel by 10:40 on the Chicago Board of Trade.

Gold and silver decline as a dollar’s gain lowers demand for the precious metals as an alternative investment. Increasing number of Americans signing contracts to buy homes and positive manufacturing data signal ease in inflation concerns. As crisis conditions are dissipating, some investors sell gold when the dollar gains. December futures for gold delivery declined $1 to $952.50 per ounce as of 12:06 on NYMEX. December delivery for silver dropped $0.148 (1 percent) to $14.7775 per ounce in New York.

Wheat tumbled because of expectation that favorable weather will spur production and supplies in the U.S., the biggest exporter of the grain in the world. About 72 percent of U.S. wheat in spring was in good condition by August 23d, compared to 55 percent in a previous year. Global production may reach 659.3 million metric tons in the year ending May 31. December futures for wheat delivery dropped $0.13 (2.6 percent) to $4.9375 per bushel as of 10:42 on CBoT.

Copper prices drop as the dollar rebounded against euro, causing decline in demand for commodities as an alternative investment. Another reasons for copper fall is declining demand in China, the world’s biggest metal user. December futures for copper delivery fell $0.0275 (1 percent) to $2.8495 per pound by 11:06 on the Comex division of the New York Mercantile Exchange.

Wheat gained because of worries that dry weather will cause decline in production of Australia, the fourth- biggest exporter of the grain in the world. El Nino climate pattern causes abnormal weather that may curb grain yield. Australian growers may harvest 23 million metric tons in the year ending on May 31 compared to 21.5 million tons in the previous year. December futures for wheat delivery gained $0.0775 (1.6 percent) to $5.065 per bushel as of 10:04 on CBoT.

Gold dropped as result of a rebound in the dollar and decline of oil reducing attractiveness of the precious metal as a hedge against inflation. The dollar climbed after reports from U.S. about increase in the sales of new houses and rising orders for goods. December delivery for gold futures fell $0.9 (0.1 percent) to $945.10 per ounce by 13:05 on the New York Mercantile Exchange’s Comex division.

Argentine farmers are going to halt grain and beef sales after the government vetoed a law about tax breaks to Buenos Aires growers experiencing the worst drought in a century. The government claimed that it vetoed parts of the bill because of concern that farmers would claim their goods came from drought- afflicted areas of Buenos Aires to evade taxes. Argentine farmers harvested 13.2 million tons of corn this year compared to 22 million tons harvested previous year.

Corn and soybean harvest in the U.S can be harmed by unusually dry weather. Yield can be lowered also because of delayed planting, which are at least two weeks behind normal. Government forecast promised second-largest crop of corn and record production of soybeans disregarding impact of late planting and possibility of drought. December futures for corn delivery dropped $0.0425 (1.3 percent) to $3.2775 per bushel on August 14th on the Chicago Board of Trade. November futures for soybean delivery dropped $0.3725 (3.7 percent) to $9.815 per bushel.

Wheat, corn and soybeans falls as rebounded dollar erodes attractiveness of U.S commodity exports. Decline in prices for crude oil, leading to lower demand for fuels based on corn and soybeans, also makes prices for this commodities to drop. December futures for wheat delivery dropped $0.14 (2.7 percent) to $4.955 per bushel by 11:09 on CBoT. December futures for corn delivery slid $0.125 (3.8 percent) to $3.1525 per bushel. November futures for soybean delivery fell $0.32 (3.3 percent) to $9.495 per bushel.

Gold, and other precious metals, falls today as dollar gains, lowering metal’s attractiveness as hedge against inflation. Gold demonstrates inverse behavior and dropped lowest this month as dollar gained. December futures for gold delivery fell $17.40 (1.8 percent) to $931.30 per ounce at 12:16 on NYMEX.

Steel prices in the U.S. rose for the first time this year today. The decline of steel consumption reached a bottom for the current business cycle and should begin to restore gradually as distributors began restocking their severely depleted inventories. U.S. steel rose $1.12 (3 percent) to $38.61 yesterday in NYSE.

Dollar’s slide causes wheat gain today. Wheat prices increase as speculation that dollar decline will continue leads to expectations for increase in the U.S. grain export. But there is anxiety that if dollar would rebound exports can fall back. September futures for wheat gained $0.0525 (1 percent) to $5.215 per bushel by 10:41 on CBoT.

China may overcome India in demand for gold. China became the first of the major economies to restore from the worldwide economical decline resulting in possibility that the country would become the world’s biggest consumer of gold this year. Demand for gold in China rose to 105.2 tons from 103.3 tons (1.8 percent) while purchases from India in the first quarter fell to 17.7 metric tons from 107.2 tons (83 percent) a previous year.

Concern that U.S. may change index-fund rules causes wheat prices to fall today. Gary Gensler, the chairman of the Commodity Futures Trading Commission, told a Senate subcommittee this week that the agency is planning to phase out waivers that allow index traders to exceed position limits with the goal to bring cash prices and futures closer. September futures for wheat fell $0.0425 (0.8 percent) to $5.275/bushel by 9:47 on CBoT.

De Beers sales dropped most on gem demand since 1974. The largest diamond company in the world, De Beers, reported the greatest fall in sales of unpolished and uncut gems since at least 1974 because demand slumped in the U.S., Europe and Japan as result of the worldwide economical decline. De Beers reported today that first-half sales of rough diamonds fell to $1.4 billion (57 percent) and production slid to 6.6 million carats (73 percent) as result of shutting down mines in Botswana and Namibia by the Johannesburg-based company.

Hershey Co. speculation that demand will rise with reviving economy caused cocoa to go up today. The company reports a 5.9 percent increase in second-quarter sales to $1.171 billion thus making Hershey to rise to the highest since September on the New York Stock Exchange. September futures for cocoa went up $125 (4.5 percent) to $2,877/metric ton as of 10:55 on ICE Futures  U. S. in New York.

Speculation about increasing demand for grain from the the world’s biggest shipper, the U.S., causes wheat prices go up today. Japan bought 87,000 tons from the U.S. and South Korea’s biggest feed-grain buyer, Nonghyup Feed Inc., reported it is seeking 55,000 tons. September futures for wheat gained $0.0475 (0.9 percent) to $5.2675/bushel by 11:21 on CBoT.

Dollar falls causing gold to go up to five-week high today making it a good alternative investment. «There are good reasons to believe the dollar should weaken, and in that case, gold will be a beneficiary, but it’s not necessarily going to occur overnight» reports Patrick Chidley, an analyst at Barnard Jacobs Mellet LLC. August futures for gold gained $2.50 (0.3 percent) to $955.80 at 11:30 on the Comex division of the New York Mercantile Exchange.