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

Energy

Crude oil closed 2.2-percent higher, with the November contract settling $2.29 higher at $108.02 a barrel. Oil was supported from expectations for approval of the $700 billion bailout plan, combined with falling inventories due to hurricane disruptions was noted for rise in oil futures today.

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, as per the Energy Information Administration. Government data showed a decline of 6.7 million barrels over the past four weeks. October heating oil settled 2.13 cents higher at $3.0483 a gallon.

The Energy Information Administration reported an injection of 51 bcf of natural gas into storage during the week ended Sept. 19, lifting the amount of working gas in storage to 3.023 tcf. The injection still left storage 162 bcf lower than the same period last year but 35 bcf above the 5-year average.

October RBOB gasoline rose 10.26 cents to settle at $2.6973 a gallon, and October natural gas settled 4.5 cents higher at $7.724 per million British thermal units.

Grains

Soybeans closed modestly lower today, with the December contract falling 4 cents to settle at $11.83 a bushel. Falling energy prices and strength in the US dollar was noted for much of todays action. December soy-meal settled $4.00 lower at $328.50 per short ton, and December soy-oil finished 9 points higher at 48.29 cents per pound.

Corn closed lower for the first time in a week, with the December contract settling 4 3/4 cents lower at $5.58 1/4 per bushel. The market traded lower on poor export sales, and expectations that demand will continue to shrink.

U.S. export sales fell 68-percent to 547,796 tons last week, compared to the same time last year, the U.S. Department of Agriculture said in a report today. Total sales for delivery before the end of the marketing year are down 36-percent at 12.96 million metric tons.

The International Grain Council said in a report today that global trade in corn will fall by 13-percent to 87 million metric tons in the marketing year that began July 1, compared with a year earlier.

December wheat closed 6 cents higher at $7.36 1/4 a bushel, November rice finished 39 cents higher at $20.18 per hundredweight, and December oats gained 1 cent at $3.35 a bushel.

Softs

Coffee closed 1.5-percent higher today, with the December contract settling 195 points higher at $1.3760 a pound to a fresh 1 1/2-week high. Tightening supplies and expectations for further dollar weakness was noted for the bullish action in coffee.

Areas in Colombia's Caldas province, which accounts for nearly 13-percent of national output, was harmed by fungus reducing yields as growers say that moldy beans have to be thrown away.

Coffee Supplies in U.S. warehouses monitored by ICE Futures fell by 13,000 bags yesterday. A bag of coffee weighs 60 kilograms (132 pounds).

December cotton closed 31 points higher at 61.66 cents a pound, November orange juice finished 130 points lower to settle at 91.30 cents a pound, and October sugar settled 96 points higher at 13.10 cents a pound.

Meats

Cattle futures closed lower today with October feeder cattle finishing 75 points lower at 106.85 cents a pound. Falling cash prices and speculation consumers will switch to lower prices protein sent beef lower. October live cattle settled 122 points lower at 100.95 cents a pound.

The U.S. Department of Agriculture's midday beef wire for Monday showed choice cuts fell $0.53 per hundredweight, while select items were $0.27 per hundredweight lower.

Hogs settled higher today, with October lean hogs settling 32 points higher at 69.27 cents a pound. USDA's monthly belly storage results on Monday were considered mildly bullish by traders sending February pork bellies 12 points higher at 98.12 cents a pound.

Metals

Gold finished the session 1.5-percent lower, with the December contract closing $13 lower at $882 an ounce. Gold traded lower today as some of the flight to safety premium was taken out after a bipartisan group of lawmakers said they have a "fundamental agreement" on a $700 billion plan.

Copper gained nearly 1-percent today, with the December contract settling 2.8 cents higher at $3.1345 a pound. Speculation that the bailout will increase the demand for copper used in wires and piping used in construction was cited for todays gain.

January platinum fell $39.80 to settle at $1,191.20 an ounce, December palladium closed $10.40 lower at $242.45 an ounce, and December silver settled 16.5 cents lower at $13.275 an ounce.