Commodity Market Summary
June 9, 2008
Crude oil closed 3-percent lower today, with the July contract settling $4.19 lower at $134.35 a barrel. Profit-taking after surging nearly $11 on Friday combined with the firming greenback was noted for the decline.
"A strong dollar is in our nation's interests. It is in the interests of the global economy," Bush said outside the White House. In an interview with the Times of London Bush added to his earlier comments, saying, "We want the dollar to strengthen."
When asked if the administration would consider selling other currencies and buying dollars to support the greenback, Paulson said, "I would never take intervention off the table or any policy tool off the table. I just can't speculate about what we will or won't do."
July natural gas settled 8.6 cents lower at $12.604 per million British thermal units, July RBOB gasoline settled 15.6 cents lower at $3.394 a gallon and July heating oil settled 9.3 cents lower at $3.877 a gallon.
Wheat closed nearly 3-percent lower today, with the July contract settling 22 1/2 cents lower at $7.88 1/2 per bushel. Favorable weather conditions causing the government to increase production forecasts were noted for today's decline.
Soybeans retreated from a three-month high, with the July contract settling 5 1/2 cents lower at $14.52 a bushel. Argentine farmers halting their strike, and falling energy prices was noted for today's decline.
Farmers in Argentina, the world's third largest exporter, halted their nationwide strike on June 6 in an effort to restart talks over export tax increases.
Corn closed 1-percent higher today, with the July contract settling 6 1/2 cents higher at $6.57 1/2 a bushel. Speculation that planting and emergence delays will result in smaller yields was noted for the record close today.
July rice closed 4 cents lower at $19.92 per hundredweight, July oats closed 5 1/4 cents lower at $3.94 a bushel, July soy-meal settled $2.00 lower at $371.00 per short ton, and July soy-oil settled 4 points lower at 64.30 cents per pound.
Coffee closed 3.7-percent lower today, with the July contract settling 480 points lower at $1.3135 a pound. Forecasts for mild conditions in Brazil reversing earlear expectations for frigid weather were noted for the sell-off today.
Cotton closed nearly 1-percent lower with the July contract settling 52 points lower at 66 cents a pound. Cotton started the session higher, before falling energy prices and a firming dollar sent cotton lower into the close.
The USDA is scheduled to release the June cotton supply and demand report at 8:30 a.m. EDT Tuesday. Analysts expect the USDA to trim its cotton export projection from the May estimate of 14.2 million bales.
July sugar settled 4 points lower at 9.70 cents a pound, July orange juice settled 180 points lower at $1.1380 a pound, and July cocoa settled $8 lower at $2,870 a metric ton.
Cattle futures were lower today, with August feeder cattle settling 157 points lower at $110.67 per hundredweight. Cattle closed lower in response to nervousness about this week's potential cash trade. August live cattle settled 122 points lower at $98.97 per hundredweight.
The U.S. Department of Agriculture's mid-day boxed beef wire reported choice cuts fell $0.21 per hundredweight, while select items were $0.77 per hundredweight higher.
Hogs continued lower today, with June lean hogs settling 115 points lower at 73.97 cents a pound, and August pork bellies settled 130 points lower at 72.55 cents a pound.
Gold futures closed the week nearly unchanged with the August contract settling 90 cents lower at $898.10 an ounce. Pro dollar rhetoric from Washington and the Federal Reserve sent the greenback higher reducing the appeal of precious metals as a hedge against inflation.
Copper retreated from Friday's 1-week high, with the July contract settled 1 cent lower at $3.61 per pound. Strength in the US dollar and falling energy prices were noted for the decline in copper today.
July silver settled 22 cents lower at $17.21 an ounce, July platinum settled $21.70 an ounce lower at $2,059.60 an ounce.
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