Global Futures Market Summary

By: Devin Brady | Tue, Sep 30, 2008
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Daily Recap of the Metals, Energy, Grains, Meats, and Softs Markets

Metals

Gold closed lower for the first time in three sessions, with the December contract falling $13.60 at $880.80 an ounce. Speculation that some form of the bail-out package will be passed later in the week sent the greenback screaming higher, reducing the appeal of precious metals as a hedge against inflation, and as a safe haven. Gold settled the week 5.5-percent higher.

Copper closed 1-percent lower today, with the December contract settling at $2.88 a pound. Speculation that the slumping U.S. housing market weakness will continue thus 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.

December silver fell 5.8-percent to $12.28 an ounce, October platinum settled 5.6-percent lower at $1,015.10 an ounce, and December palladium fell 7.7-percent to $202.70 an ounce, and December copper skidded 1% to $2.88 a pound.

Grains

Rice settled limit-down, with the November contract settling 50 cents lower at $18.89 1/2 a bushel. Rice was limit-down on a higher US harvested, and speculation the slumping global economy will reduce demand was noted for the decline.

The U.S. Department of Agriculture reported that 52-percent of the US rice crop was harvested, up from 38-percent last week, but still remains lower than the 70-percent average for this time of year. The part of the crop rated good to excellent dropped one percentage point to 61-percent from the prior week.

Soybeans fell nearly 5-percent today, with the November contract settling 49 cents lower at $10.45 a bushel. A larger than expected rise in soybean ending stock estimates for the 2007-08 crop added to the bearish tone in the market.

Quarterly soybean stocks in the fourth quarter of the 2007-08 were estimated at 205 million bushels as of Sept. 1, the USDA reported. The number came in well above the analyst expectations for 144 million bushels with a 140 million bushel carry out.

December corn settled 25 1/2 cents lower at $4.87 1/2 a bushel, December wheat closed 12 cents higher at $6.80 a bushel, December soy-meal settled $16.40 lower at $285.00 a short ton, and December soy-oil closed 95 points lower at 44.48 cents a pound.

Softs

Coffee bounced slightly higher after falling 3-percent yesterday, with the December contract settling 20 points higher at $1.3045 a pound. Coffee fell to a yearly low early in the session before short covering sent the market slightly higher into the close.

Cotton settled slightly higher today, with the December contract gaining 13 points at 57.25 cents a pound. Follow-through selling after yesterdays limit-down session sent cotton to a fresh contract low of 55.11 cents, before rising energy and equity markets sparked a turnaround in cotton, settling near the top end of the days range.

November Orange juice settled 230 points higher at 89.20 cents a pound, October sugar settled 23 points lower at 12.36 cents a pound, and December cocoa closed $1 higher at $2,558 a metric ton.

Meats

Cattle futures closed nearly 1-percent higher today, with October feeder cattle finishing 120 points higher at 104.00 cents a pound. Bargain hunters were taking advantage of what some traders calling oversold conditions was noted for the gain. October live cattle settled 85 points higher at 98.90 cents a pound.

The U.S. Department of Agriculture's midday beef wire for Monday showed choice cuts gained $0.42 per hundredweight, while select items were $0.05 per hundredweight lower.

Hogs settled mixed today with October lean hogs settling 2 points higher at 68.57 cents a pound. Lower than anticipated midday direct cash hog quotes, and fund liquidation was noted for the decline. February pork bellies settled 300 points lower, limit-down, at 93.75 cents a pound.

Energy

Crude oil closed 4.4-percent higher today, with the November contract settling $4.27 higher at $100.64 a barrel. Even with the U.S. dollar screaming higher crude jumped on expectations for a bail-out package by the end of the week. Crude oil futures fell over 28-percent in the third quarter.

The U.S. Energy Department will release an update on petroleum supplies Wednesday morning. Analysts are split between a decline of 1.5 million barrels to a build of 2 million barrels. Expectations are for a decline of 1 to 3 million for gasoline supplies, with inventories of distillates to decline about 1.5 million barrels.

November RBOB gasoline settled 9.6 cents higher at $2.4577 a gallon, November heating oil settled 10.6 cents higher at $2.8947 a gallon, November natural gas settled 21.7 cents higher at $7.438 per million British thermal units.

 


 

Devin Brady

Author: Devin Brady

Devin Brady
IBT Commodities and Futures

Copyright 2008 Devin Brady

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