Nightly Recap of the Metals, Energy, Grains, Meats, and Softs Markets
Soybeans closed nearly 5-percent lower today, with the November contract settling 55 cents lower at $11.24 a bushel. Strength in the US dollar, favorable near-term weather forecasts in the mid-west, and plunging oil prices sent grains crashing lower today. December soy-meal settled $16.30 lower at $319.50 per short ton, and December soy-oil closed 249 points lower at 44.07 cents per pound.
Rice closed limit-down today, the largest daily move allowed by the CBOT, with the November contract settling 50 cents lower at $18.53 1/2 per hundredweight. Commodity liquidation, combined with an increase in crop condition by the USDA by 1-percent was noted for the heavy selling.
Indonesia's rice stocks have jumped to a record 2.6 million metric tons; they still need 400,000 tons before the country can start exporting. Indonesias national procurement agency is expecting rice stocks of 2.8 million to 3 million tons by the end of the year.
December wheat closed down 37 cents at $6.90 a bushel, December corn ended 29 3/4 cents lower at $5.32 1/4 per bushel, and December oats settled 13 1/2 lower at $3.26 1/4 a bushel.
Coffee closed at fresh yearly low with the December contract settling 565 points lower at $1.3340 a pound. Climbing coffee production from Columbia and strength in the US dollar sent coffee over 4-percent lower today.
Colombia's coffee production from September 2007 through August 2008 was 5-pecent higher on the year at 12.625 million bags, the National Federation of Coffee Growers, said Tuesday.
Orange juice fell over 4-percent on the day, with the November contract settling 395 points lower at 91.85 cents a pound. Without any threatening weather in the Atlantic Basin orange juice followed the path of least resistance - lower.
October sugar settled 14 points lower at 12.00 cents a pound, December cocoa closed $37 lower at $2,570 a metric ton, and December cotton finished 152 points lower at 60.61 cents a pound.
Cattle closed lower today, with December live cattle closing 70 points lower at 104.62 cents a pound. Technical pressure after reaching what some traders were calling overbought yesterday was noted for much of todays rally. October feeder cattle ended 115 points lower at 107.67 cents.
The US Department of Agriculture's midday Tuesday boxed-beef wire reported that choice cuts gained $0.42 per hundredweight, and Select items were $0.77 higher.
Hogs were mixed on the session, with December lean hogs settling 45 points lower at 66.10 cents a pound. Weak cash prices, and speculation that the economy will remain week, reducing demand was cited for some of todays action. February pork bellies closed 197 points higher at 90.12 cents a pound.
Crude oil fell to a 7-month low today, with the October contract settling $4.56 lower at $91.15 a barrel. Continual risk de-leveraging, Hurricane Ikes apparent failure to cause much damage in the Gulf, and expectations that the falling global economy will continue to curb demand was noted for the heavy sell-off today.
Speculative, or non-commercial, natural gas long position were cut by 2,690 contracts and increased their short positions by 9,067 contracts, resulting in a net short position of 172,833 contracts, 11,757 above last week's total.
October heating oil fell 7.15 cents to settle at $2.7197 a gallon, October RBOB gasoline prices dropped 16.06 cents to settle at $2.4008 a gallon and October Natural gas for October delivery fell 9.5 cents to settle at $7.279 per 1,000 cubic feet.