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September 23, 2008

Global Futures Market Summary
by Devin Brady

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

Grains

Soybeans finished the session 1.5-percent lower, with the November contract settling down 18 cents at $11.87 a bushel. Falling energy prices and strength in the U.S. dollar was noted for the decline in soy today. December soy-meal settled $2.00 higher at $330.00 per short ton, and December soy-oil closed 180 points lower at 48.23 cents per pound.

Corn closed higher for the third straight session, with the December contract settling 1 3/4 cent higher at $5.60 3/4 a bushel. Speculation that dry weather over much of the Midwest in August will result in smaller yields sent corn modestly higher on the session.

The USDA said Monday that entering the week only 5-percent of the 2008 corn crop had been picked, well below the 14-percent average seen at this point during the past five years.

Wheat settled 1.7-percent higher today, with the December contract settling 12 3/4 cents higher at $7.50 1/2 a bushel. Speculation that higher fertilizer and other input costs at a time when wheat prices have nearly been chopped in half will encourage farmers to plant less this fall was noted for the bullish action in wheat.

November rice settled 33 cents higher at $20.04 per hundredweight, and December oats finished 2 cents higher at $3.43 a bushel.

Meats

Cattle settled higher today, with October feeder cattle finishing 45 points lower at 106.60 cents a pound. Speculation that Mondays rally was overdone was noted for much of the drag lower today. October live cattle settled 25 points lower at 102.20 cents a pound.

The U.S. Department of Agriculture's midday beef wire for Monday showed choice cuts fell $0.86 per hundredweight lower, while select items were $0.30 per hundredweight higher.

Hogs settled the session mixed today, with October lean hogs settling 20 points lower at 68.45 cents a pound. USDA's monthly belly storage results on Monday were considered mildly bullish by traders sending February pork bellies 127 points higher at 95.00 cents a pound.

Metals

Gold fell 2-percent on the day, with the December contract settling $17.80 lower at $891.20 an ounce. Strength in the U.S. dollar and falling energy prices reduces the appeal of precious metals as a hedge against inflation.

The New York Board of Trade's dollar index, which tracks the greenback's performance against a basket of six currencies, rose 0.9-percent to 76.88.

December silver fell 28 cents to settle at $13.17 an ounce, October platinum finished $23.80 to close at $1,212 an ounce, December palladium settled $5 lower at $250.75 an ounce, and December copper dropped 10 cents to end at $3.15 a pound.

Energy

Crude oil slid 2.5-percent toady, with the November contract settling $2.76 lower at $106.61 an ounce. Oil declined for the first time in a week on speculation the government bailout will not help prevent further demand destruction combined with the rally in the greenback. Crude oil had its largest gain in history yesterday.

October heating oil futures fell 5.02 cents to settle at $3.0132 a gallon, October RBOB gasoline futures settled 10.88 cents lower at $2.595 a gallon, and November natural gas futures jumped 20.1 cents to settle at $8.144 per 1,000 cubic feet.

Softs

Cotton futures fell by 4-percent today, with the December contract settling 2.09 cents lower at 62.30 cents a pound. U.S. dollar strength and falling equity markets were noted for the bearish tone in cotton trading today.

November orange juice settled 20 points lower at 92.75 cents a

Pound, October sugar closed 23 points lower at 11.83 cents a pound, December cocoa finished $24 lower at $2,702 a metric ton.

Devin Brady
IBT Commodities and Futures

Copyright 2008 Devin Brady

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