Nightly Recap of the Metals, Energy, Grains, Meats, and Softs Markets

Metals

Gold surged higher today, with the December contract settling $46.50 to settle at $897 an ounce. Investors seeking safety from the financial crisis have sent gold 15-percent higher in the past 2-days. Speculation that the global liquidity machine will increase inflation was also noted for some of the bullish action.

Even money market funds that were considered low-risk investments have had to close. Putnam Investments LLC closing its $12.3 billion institutional Putnam Prime Money Market Fund yesterday due to "significant redemption pressure," the company said.

December silver jumped $1.025 to settle at $12.70 an ounce, December copper rose 2.35 cents to settle at $3.006 a pound, while October platinum closed $51.30 higher at $1,137.60 an ounce.

Energy

Crude oil closed modestly higher today, with the October contract settling 72 cents higher at $97.88 a barrel. Weakness in the U.S. dollar, pipeline attacks in Nigeria, and declining crude inventories due to hurricane disruptions was noted for much of the rally in oil today.

The Energy Information Administration said yesterday that U.S. crude stocks fell by 6.3-million barrels for the week ending Sept. 12. The draw-down in inventories was much larger than the 3.7-million barrel drop expected by analysts.

The Interior Department says at least 49 offshore oil or natural gas production platforms in the Gulf of Mexico were destroyed by Hurricane Ike. The destroyed were capable of producing 13,000 barrels of oil and 82 million cubic feet of natural gas a day, the Minerals Management Service said in a statement today.

A representative for Mexico's state oil company, Pemex, said on Thursday that some U.S. oil refiners affected by Hurricanes Gustav and Ike canceled some Mexican crude oil cargoes.

October heating oil settled 4.23 cents lower at $2.7824 a gallon, October RBOB gasoline closed 2 cents higher at $2.4824 a gallon and October natural gas slid nearly 3 cents to close at $7.621 per 1,000 cubic feet.

Grains

Soybeans fell to a 9-month low today, with the November contract settling 23 cents lower at $11.16 a bushel. Funds were heavy sellers today in soybeans on a report from the Department of Agriculture showing export sales fell by 11-percent. Soybean sales fell by 61-percent from the same four-week period from a year ago.

Corn closed 4.8-percent lower today, with the December contract settling 26 3/4 cents lower at $5.27 1/4 a bushel. The Department of Agriculture reported today that export sales of corn fell by 14-percent. Corn sales fell by 80-percent from the same four-week period from a year ago.

December wheat closed 33 cents lower at $6.92 3/4 a bushel, December oats settled 8 cents lower at $3.25 a bushel, November rice closed 13 cents lower at $18.80 per hundredweight, December soy-meal finished $8.90 lower at $313.80 per short ton, and December soy-oil settled 48 points higher at 44.90 cents per pound.

Softs

Cotton finished the session over 1-percent lower today, with the December contract settling 66 points lower at 60.76 cents a pound. Speculation that a slumping global economy will lower demand for cotton, was noted for cottons decline to a fresh 15-month low.

Orange juice closed at a fresh contract low, with the November contract settling 195 points lower at 90.30 cents a pound. Without any weather systems in the Atlantic Basin to threaten the Florida orange crop sellers continued to press prices lower.

October sugar settled 55 points lower at 11.67 cents a pound, and October fell 43 points at 13.59 cents a pound.

Meats

Cattle closed lower today, with December live cattle settling 233 points lower at 100.50 cents a pound. Technical pressure and position squaring in front of Fridays USDA cattle-on-feed survey was noted for some of todays action that sent live cattle to a fresh 5-month low. October feeder cattle ended 213 points lower at 104.18 cents.

Hogs closed lower today, with December lean hogs settling 140 points lower at 65.05 cents a pound. Weak cash prices, and speculation that the economy will remain weak, reducing demand was cited for some of todays action. February pork bellies closed 190 points lower at 88.20 cents a pound.