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

Energy

Crude oil closed modestly lower today, with the October contract settling 88 cents lower at $105.73 a barrel. Concerns over demand destruction due to the global economic slowdown overshadowed supply data from the Energy Department showing inventories fell for the past five weeks.

Crude inventories fell to 290.2 million barrels, for a decline of 1.5 million barrels for the week ended Sept. 19, the Energy Information Administration said. Government data showed a decline of 15.7 million barrels over the past five weeks.

Heating oil inventories fell by 4.2 million barrels to 125.4 million barrels for the week ended Sept. 19, the Energy Information Administration said. Government data showed a decline of 6.7 million barrels over the past four weeks. October heating oil settled 1.7 cents higher at $3.013 a gallon.

RBOB gasoline inventories fell by 5.9 million barrels 178.7 million barrels for the week ended Sept. 19, the Energy Information Administration said. Government data showed a decline of 38.4 million barrels over the past nine weeks. October RBOB gasoline settled 10.9 cents lower at $2.595 a gallon.

The EIA is scheduled to the inventory report for natural gas tomorrow, with analysts expecting a build of 63 to 67 billion. October natural gas fell 25.2 cents to settle at $7.679 per million British thermal units.

Metals

Gold closed a modest 0.4-percent higher Wednesday, with the December contract settling $3.80 higher at $895 an ounce. Investors seeking safety from the financial crisis, and speculation that the global liquidity machine will increase inflation was noted for the bullish action in gold.

Copper fell for the second straight session, with the December contract settling 4.55 cents lower at $3.1065 per pound. Speculation that the slumping U.S. housing market weakness will persist, reducing demand for copper, was noted for the decline.

The U.S. governments existing home sales report showed sales of previously owned homes crumbled more than expected last month in the U.S., with the median price sliding the most on record.

January platinum closed $13.10 higher to settle at $1,231 an ounce, December palladium finished $2.10 higher at $252.85, and December silver settled 27 cents higher at $13.44 an ounce.

Grains

Wheat closed lower for the first time in 4 days, with the December contract settling 20 1/4 cents lower at $7.30 1/4 a bushel. Planting progress in the U.S. nearly doubled last week, with a record crop being harvested was noted for the bearish tone in wheat today.

The U.S. Department of Agriculture said this week that seeding of the winter wheat crop in the U.S. was 22-percent completed as of Sept. 21. This was double the amount reported in the prior week.

The forecast for global wheat production in 2008-09 was raised to 676.3 million tons, climbing 5.5 million since the August estimate and up 65.4 million from 2007-08, the U.S. Department of Agriculture said last week.

November soybeans settled unchanged at $11.87 a bushel, December soy-meal settled $2.50 higher at $332.50 per short ton, and December soy-oil closed 3 points lower at 48.20 cents per pound.

The U.S. Department of Agriculture will release its weekly export sales report at 8:30 a.m. EDT Thursday. Soybean export sales are estimated at 200,000 to 700,000 tons. Soy-meal export sales are projected between 50,000 to 125,000 metric tons, and soy-oil is expected in a range of 0 to 10,000-ton.

December corn ended up 2 3/4 cents to $5.63 per bushel, December oats fell 9 cents to settle at $3.34 a bushel, and November rice finished 25 cents lower at $29.79 per hundredweight.

Softs

Coffee closed modestly higher today, with the December contract settling 75 points higher at $1.3565 a pound. Coffee futures erased much of the 2cent rise on light volume, but were able to hold onto a gain of 75 points on the session.

Cocoa climbed to a fresh 3-week high, with the December contract settling $55 higher at $2,757 a metric ton. Strength in the CRB index combined with dollar weakness was noted for the decline.

December coffee settled 75 points higher at $1.3565 a pound, December cotton settled 95 points lower at 61.35 cents a pound, November orange juice lost 15 points to settle at 92.60 cents a pound, and October sugar settled 31 points higher at 12.14 cents a pound.

Meats

Cattle futures closed mixed today, with October feeder cattle finishing 100 points higher at 107.60 cents a pound. Strong wholesale beef sales to grocery stores helped support the cattle market today. October live cattle settled 2 points lower at 102.17 cents a pound.

The U.S. Department of Agriculture's midday beef wire for Monday showed choice cuts gained $0.54 per hundredweight, while select items were $0.26 per hundredweight lower.

Hogs settled higher today, with October lean hogs settling 50 points higher at 68.95 cents a pound. USDA's monthly belly storage results on Monday were considered mildly bullish by traders sending February pork bellies 300 points higher at 98.00 cents a pound.