Global Futures Market Summary

By: Devin Brady | Mon, Oct 6, 2008
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Daily Recap of the Metals, Energy, Grains, Meats, and Softs Markets

Metals

Gold gained 4-percent on the day, with the December contract settling $33 higher at $866.20 an ounce. Investors ran to gold as a safe-haven on concerns the huge bail-out package will have little affect on the global financial crisis.

Copper was slammed by 7.4-percent today, with the December contract settling at $2.49 a pound. Lower housing and auto sales have sent base metals in a tailspin. Copper is at an 18-month low, and platinum and palladium, that is used in new cars, are down over a third on the year.

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 0.4-percent at $11.29 an ounce, October platinum settled 1.7-percent higher at $973.20 an ounce and December palladium closed modestly lower at $201.70 an ounce.

Energy

Oil fell below $94 a barrel today, with the November contract settling $4.56 lower at $93.97 a barrel. Concerns that weakening economic data will result in further demand destruction, combined with strength in the U.S. dollar set the stage for an ugly day in oil.

On Thursday, The Labor Department reported that initial jobless claims increased by 1,000 climbing to a seasonally adjusted 497,000, considerably above analyst expectations of 475,000. Jobless claims reached the highest level since just after the terrorist attacks on Sept. 11 seven years ago.

November heating oil futures fell 13.74 cents to settle at $2.7095 a gallon, November RBOB gasoline settled 10.5 cents lower at $2.255 a gallon, and November natural gas futures lost 24.7 cents to settle at $7.481 per 1,000 cubic feet.

Grains

Soybeans fell limit-down, the largest daily move allowed by the CBOT, with the November contract settling 70 cents lower at $9.22 a bushel. The surging dollar, combined with the collapsing global equity markets were noted for much of the decline.

Corn closed limit-down, with the December contract settling 30 cents lower at $4.24 a bushel. Corn fell over 7-percent today after declining over 16-percent last week.

Rice traded limit-down early in the session, some buyers stepped in late pulling the market just off of the lows to close 70 1/2 cents lower at $17.97 1/2 per hundredweight on the November contract.

December wheat settled 45 cents lower at $5.95 1/4 a bushel, December soy-meal settled $19.90 lower at $249.90 per short ton, and December soy-oil closed 250 points lower at 40.00 cents per pound.

Softs

Coffee sank to a fresh 18-month low today with the December contract settling 755 points lower at $1.1450 a pound. Rising inventories, a slowdown in the global economy, and a rise in the value of the U.S. dollar was noted for much of 10-percent loss for the week.

U.S. coffee inventories have climbed 2.3-percent to 4.57 million bags. Brazil, the world's largest grower of the bean, is expected to harvest 51.1 million bags this year, well above last years 37.6 million, the U.S. Department of Agriculture forecasted.

December cocoa settled down $69 at $2,400 a metric ton, March sugar settled 82 points lower at 11.79 cents a pound, and December cotton settled 300 points lower at 54.41 cents a pound

Meats

Cattle settled limit-down, with October feeder cattle settling 300 points lower at 97.67 cents a pound. Concerns that cash strapped consumers will rotate into cheaper proteins continues to weigh on market sentiment. October live cattle also settled limit-down at 92.60 cents a pound.

The U.S. Department of Agriculture's midday beef wire for Friday showed choice cuts were $0.80 per hundredweight lower, while select items fell by $0.15 per hundredweight.

Hog futures closed the week moderately lower, with October lean hogs settling 5 points higher at 66.47 cents a pound. Fund liquidation continues to weigh on prices. February pork bellies fell 105 points today, settling at 93.05 cents a pound.

 


 

Devin Brady

Author: Devin Brady

Devin Brady
IBT Commodities and Futures

Copyright 2008 Devin Brady

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