CNC Commodity Nightcap - July 8, 2009
Commodity Nightcap for July 8, 2009
Grains
_______________________
Follow this link for free Grains technical trading information
Wheat - finished higher today ending a growing series of losing days. The move upward today was largely driven by technical factors as many saw the market as oversold. Traders should learn more about wheat fundamentals tomorrow as the USDA releases its weekly export sales report at 8:30 am ET. September contracts closed at $5.1725 a bushel up 4.75 cents.
Corn - closed mixed today as July contracts advanced 3.75 and December closed down 1.5 cents to $3.3925 and $3.3425 respectively. Crude oil's weakness is weighing heavily on corn prices as it discourages the production of ethanol, a fuel for which corn is used to create. The USDA announces fundamental supply and demand data tomorrow and traders were preparing themselves for the news.
Soybeans - tried to rebound today after being hit hard yesterday but fell short. The drop in price yesterday prompted many traders to believe that demand for beans would increase on lower prices. Not only was yesterday's close the lowest in about 3 months, but bullish production forecasts from Brazil also assisted the belief that demand might shift. The thoughts were for naught though as November futures remained down closing off 3 cents to $8.92 a bushel; nearer term contracts with lower volume were hit harder as August fell 38.25 cents and July dropped 49.25 to $10.15 and $10.84 a bushel respectively.
Softs
_______________________
Follow this link for free Softs technical trading information
Sugar - yesterday Morgan Stanley released a statement suggesting that the global sugar deficit will be bigger than first expected yet prices still fell. Today however prices moved forward in accordance with the prediction and gained .25 cent for October through March contracts. October ended at 17.21 cents while March closed at 18.41 cents per pound.
Cocoa - prices were up sharply today on news that the IMF may offer $1 Billion in aid to Ghana the world's second largest cocoa producer. September futures were up $74 dollars to $2,542 a ton and December contracts were up $70 to close at $2,566.
Orange Juice - finally lost some footing and retraced its recent gains a bit. September futures were off 3.35 cents to 85.05 cents per pound. Juice had moved over 10% in the past two sessions.
Coffee - for September delivery fell .35 cent to $1.1635 per pound. During the session September contracts touched a low of $1.161 not seen since May 1st.
Meats
_______________________
Follow this link for free Meats technical trading information
Pork Bellies - after hitting limit up for July and August yesterday bellies saw some follow through buying. Technical support, short covering, and bullish supply/demand data helped bellies yesterday. Today July finished at 57.90 a gain of 70 points and August at 58.00 per pound moving 47 points.
Lean Hogs - moved opposite of bellies today and finished sharply lower. Fundamental weakness in the hog market and technical support being broken lead the jail break downward. July was off nearly 3% to 58.92 cents per pound while August fell 117 points to close at 61.02.
Live Cattle - finished lower on bearish supply and demand data. A weaker stock market and falling crude prices along with an apparent shift in consumer sentiment sent contracts lower. August was down 85 points to 83.35 and October was off a bit more, down 87 to 88.32 cents per pound.
Feeder Cattle - eroding beef demand and the same economic problems that plagued live cattle also hurt feeders. August futures were off 100 points while September dropped 55 to close at 101.65 and 101.85 cents per pound respectively.
Metals
_______________________
Follow this link for free Metals technical trading information
Gold - got slapped today on weak technicals, a stronger US Dollar, and weaker oil prices. August futures fell nearly $20 to close at $909.30 an ounce. Other season factors have been weighing on gold prices recently as well. These factors include decreased fabrication and weaker speculative interest as many potential investors take vacations.
Silver - got hit hard today on Gold's decline and weaker underlying fundamentals. July through September contracts dropped 36.8 cents to close at 12.841, 12.845, and 12.852 dollars per ounce respectively. July contracts are also in the process of rolling over.
Platinum - per the usual lately the platinum group precious metals suffered on concerns that the auto parts sector would not demand as much of them as in previous years. Seasonal demand has also hurt pricing as auto production is typically lower during the summer months due to retooling shutdowns at auto factories. Platinum for delivery in October was down $34 to 1,101.8 per ounce.
Palladium - for September delivery was down $6.40 to $234.10 an ounce.
Copper- continued to decline on fears that China's demand will ebb as an economic recovery is likely to be slow in coming. Copper is now down for the fourth day which is the longest downturn in nearly 4 months. September futures fell 6.65 cents to $2.159 per pound on the IMF's announcement that the global economy will contract 1.4 percent this year; 1.4% was more than previously forecasted.
Energy
_______________________
Follow this link for free Energy technical trading information
Crude Oil - was smashed for the fourth straight day as gas and distillate inventories continue to rise. Stockpiles of heating oil and diesel fuel are now at the highest levels in nearly 25 years. Concerns about an economic recovery have also plagued oil in recent days and were enough to push August crude down another $2.34, roughly 3.7% to $60.28 a barrel. Prices are now at 6 week lows and the dollar continues to rise.
Natural Gas - fell again today on continued concerns supply would far exceed demand and bearish conditions imposed by an increasing dollar. August contracts lost .76 cent to close at $3.353 per million British thermal units while September lost .80 cent to close at $3.478 per million BTU's.
Gasoline RBOB - for August dropped another 7.45 cents to $1.6583 per gallon and closed at the lowest level since early May. Falling crude prices, a rising dollar, and increased fuel supply have damaged prices over the past several sessions.
Heating Oil - like the other energies August heating oil was also down and lost another 5.75 cents, or 3.59% following Thursday through Tuesday's declines. Like all energies, heating oil is suffering from a swing in sentiment and the realization that the recession may take longer than expected. According to the US EIA stockpiles of heating oil are at 25 year highs. August contracts settled at $1.5432 per gallon.
_______________________
Want to stay abreast of commodity news? Visit Commodity News Center daily and sign up for our free newsletter. CNC is also your source for commodity quotes, charts, and breaking commodity news.
Copyright 2009© Commodity News Center
