Global Futures Market Summary
Nightly Recap of the Metals, Energy, Grains, Meats, and Softs Markets
Gold closed 9-percent higher today, with the December contract settling $64.50 higher at $845 an ounce. After the market closed, gold continued higher in electronic trading, gaining another $20 as investors turned to gold as a safe-haven from falling global equity markets.
The Federal Reserve late Tuesday seized control of AIG with an $85 billion bailout in an attempt to avert a potentially disastrous bankruptcy. The move by the Fed was the government's most dramatic attempt to halt a systemic threat to the global financial system.
Financial market turmoil continued in Russia today, as trading on the country's major exchanges were halted for a second straight day, with the finance ministry announcing plans to loan the three largest banks in Russia up to $44 billion.
December silver in an attempt to not be outdone by gold soared 88.8 cents to settle at $11.405 an ounce. December copper settled 5.15 cents lower at $3.0375 a pound.
Crude oil closed over 6.5-percent higher today, with the October contract settling $6.01 higher at $97.16 a barrel. Weakness in the U.S. dollar, and a decline of 6.3 million barrels in crude inventories due to hurricane disruptions was noted for much of the rally in oil today.
The U.S. Minerals Management Service reported that as of Monday the 3,800 offshore oil and gas production platforms in the Gulf had been destroyed by Hurricane Ike, which produced a total of 11,000 barrels of oil a day and 82 million cubic feet of gas a day.
The EIA said motor gasoline supplies fell 3.3 million to 184.6 million in the latest week, falling 32.5 million in eight weeks. Refinery utilization fell to 77.4% of capacity last week from 78.3% a week earlier due to, according to the EIA.
Natural gas climbed 8.7-percent today, with the October contract settling floor trade 63.1 cents higher at $7.91 per million British thermal units. Concerns over Gulf natural-gas production, and spillover strength from rising crude oil were noted for the gains.
October RBOB gasoline settled 6.2 cents higher at $2.463 a gallon, and October heating oil finished 10.5 cents higher at $2.8247 a gallon.
Soybeans closed 1.5-percent higher today, with the November contract settling 17 cents higher at $11.41 a bushel. The grain market was in rally mode closing higher for the first time this week. Energy climbing from yesterdays 7-month low combined with soaring gold futures was noted for the gains in grain. December soy-meal settled $3.20 higher at $322.70 per short ton, and December soy-oil finished 35 points higher at 44.42 cents per pound.
Corn was soaring today, with the December contract settling 21 3/4 cents higher at $5.54 a bushel. Speculation that yields will decline after Hurricane Ike drenched fields, short covering after declining 4.7-percent yesterday, combined with position squaring in front of tomorrows weekly export sales numbers was noted for much of the rally today.
On Thursday the US Department of Agriculture is scheduled to release its weekly export sales report at 8:30 a.m. EDT. Analysts surveyed by Dow Jones Newswire expect sales in a range of 300,000 to 500,000 metric tons.
Wheat popped 5.2-percent higher, with the December contract settling 35 3/4 cents higher at $7.25 3/4 a bushel. Dry weather in Argentina and Australia was noted for wheats re-bound from Tuesdays one-year low.
The U.S. Department of Agriculture lowered the projected wheat yield in Australia by 3 million tons last week, from the August projection to 22 million tons in the year that ends May 31.
November rice settled 13 1/2 cents higher at $18.67 per hundredweight, and December oats closed 6 3/4 cents higher at $3.33 a bushel.
Cotton closed 1.2-percent higher today, with the December contract settling 81 points higher at 61.42 cents a pound. Weakness in the U.S. dollar and surging energy and grain prices sent cotton higher on the day.
Orange juice opened lower and fell to a new contract-low before finding support from a broad based commodity rally that sent nearly every commodity higher. November orange juice settled 40 points higher at 92.25 cents a pound.
Cocoa fell nearly 1-percent today, with the December contract settling $23 lower at $2,547 a metric ton. Speculation the global slowdown will continue reducing demand for chocolate.
Cattle closed lower today, with December live cattle settling 57 points lower at 104.05 cents a pound. Technical pressure and position squaring in front of Fridays USDA cattle-on-feed survey was noted for some of todays action. October feeder cattle ended 137 points lower at 106.30 cents.
The US Department of Agriculture's midday Tuesday boxed-beef wire reported that choice cuts gained $0.28 per hundredweight, and Select items were $0.38 higher.
Hogs were mixed on the session, with December lean hogs settling 35 points higher at 66.45 cents a pound. Weak cash prices, and speculation that the economy will remain week, reducing demand was cited for some of todays action. February pork bellies closed 2 points lower at 90.10 cents a pound.