June 17, 2008
Grains
Soybeans closed 1.6-percent higher today, with the July contract settling 24 cents higher at $15.58 a bushel. Midwest flooding fears and concerns the Argentina farmers strike will spiral further out of control was noted for the rally in soy.
Speculation that 15 to 20-percent of Iowa crops that was washed away by recent flooding will not be able to be replanted - lowering yields and sending prices higher.
Demand for soybeans traditionally shift from the U.S. to South America this time of year as farmers in Argentina have just harvested, while farmers in the U.S. are beginning to plant. Any disruptions add pressure to already tight U.S. supplies.
July corn settled 9 3/4 cents higher at $7.42 1/4 a bushel, July wheat settled 21 3/4 cents higher at $8.98 1/4 a bushel, July soy-meal settled $9.20 higher at $415 per short ton, and July soy-oil settled 15 points higher at 65.80 cents per pound.
Softs
Coffee climbed to a 3 1/2-week high today, with the July contract settling 305 points higher at $1.3910 a pound. Friday's bullish USDA report, and weather concerns in Brazil was noted for the bullish day in coffee.
Cocoa closed modestly lower today, with the July contract settling $4 lower at $2,998 a metric ton. Cocoa retreated from yesterdays 28-year high on profit-taking.
July orange juice settled 245 points higher at $1.1435 a pound, July cotton settled 181 points lower at 72.81 cents a pound, and July sugar settled 22 points higher at 11.06 cents a pound.
Meats
Cattle futures closed higher today, with August feeder cattle settling 67 points higher at $110.32 per hundredweight. Strong cash prices were noted for the rise in cattle. August live cattle settled 15 points higher at $103.60 per hundredweight.
The U.S. Department of Agriculture's mid-day boxed beef wire reported choice cuts gained $0.62 per hundredweight, while select items were $0.02 per hundredweight higher.
Hog futures closed higher today, with July lean hogs settling 175 points higher at 74.62 cents a pound. August pork bellies settled 25 points higher at 73.45 cents a pound.
Metals
Gold closed modestly higher today, with the August contract settling 60 cents higher at $886.90 an ounce. Speculation that the Fed might not raise interest rates by August sent the dollar lower increasing the appeal of precious metals as a hedge against inflation.
July silver settled 15.5 cents higher at $17.075 an ounce, July copper settled 2.05 cents lower at $3.6495 an ounce, July platinum settled $13.60 higher at $2,064.30 an ounce, and September palladium settled 60 cents lower at $463.85 an ounce.
Energy
Oil futures closed modestly lower today, with the July contract settling 60 cents lower at $134.01 a barrel. Speculation whether Saudi Arabia's increase in production will help ease surging prices, and reports from MasterCard showing a decrease in U.S. gasoline demand was noted for today's action.
A weekly report from MasterCard reported U.S. gas consumption last week dropped 3.2-percent from the previous year. The SpendingPulse survey also showed gasoline demand is off 4.3 per cent over the past four weeks.
July RBOB gasoline settled 2 cents lower at $3.4179 a gallon, heating oil settled about half a penny lower at $3.8222 a gallon, and July natural gas settled 1.9 cents higher at $12.952
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