Corn fell by 6.3% since midle January 2012, while cotton fell to more than 1 years on May 2012. Gross domestic product in the euro area will decline 0.3 percent this year, the European Commission forecast May 11. Greece will have the deepest contraction, with GDP shrinking 4.7 percent. Fifty-seven percent of investors said at least one nation will leave the euro at the end of the year, according to Bloomberg Global Poll published May 10.
Industrial output
Commodities may rebound as producers of raw materials can not meet increasing demand, said Adrian Day, president of Adrian Day Asset Management in Annapolis, Maryland, which oversees about $ 170 million of assets.
Palladium supplies will lag behind demand through at least 2016, UBS AG said on May 11. Barclays Plc is forecasting shortages of copper and tin this year. U.S. soybean stocks at the end of August 2013 will be 31 percent lower than the previous year, the U.S. Agriculture Department said May 10.
"Commodities remain a good long term investment given the background and the dovish central bank continues to unexpected supply disruptions," said Mihir Worah, who manages Pacific Investment Management Co. 's $ 22000000000 Commodity Real Return Strategy Fund from Newport Beach, California, in e- mails.
Money Flows
Investors pulled $ 815 million of commodity funds in the week ended May 9, according to data from the Cambridge, Massachusetts-based EPFR Global, which tracks the flow of money. That's the biggest outflows this year, said Cameron Brandt, director of research for the EPFR. Dana-gold and precious metals lost $ 467 million.
Gold is now only 1.1 percent higher this year at $ 1,584 per ounce in New York after removing most of its gains. These metals will rally to $ 1,840 within the next six months because he remains a "currency of last choice," said Goldman Sachs Group Inc. commodity analyst in a report May 9.
Gold bullish bets fell 20 percent to 92 498 contracts, the lowest since December 2008, CFTC data showed. Bet on a rally of silver fell 32 percent to 7159, the biggest drop since late December. Gold prices fell 3.7 percent last week, the highest in two months, as the dollar climbed, curbing demand for precious metals as alternative investments. Silver fell 5.1 percent to $ 28.89 per ounce.
Fort Shutters
Fortress Investment Group LLC (Pictures), the public private equity and hedge fund manager first in the U.S., said it would liquidate $ 500 million a commodity fund run by William Callanan after losing nearly 13 percent in four months.
The fort is the third commodity hedge fund shutter in the last six weeks. Billionaire trader John Arnold said in a letter obtained by Bloomberg on May 2 that it planned to close the Centaurus Energy Master Fund in Houston, and Pierre Andurand, who co-runs BlueGold Capital Management LLP, the fund $ 1 billion in London, said last month that client money will be refunded.
Industrial output
Commodities may rebound as producers of raw materials can not meet increasing demand, said Adrian Day, president of Adrian Day Asset Management in Annapolis, Maryland, which oversees about $ 170 million of assets.
Palladium supplies will lag behind demand through at least 2016, UBS AG said on May 11. Barclays Plc is forecasting shortages of copper and tin this year. U.S. soybean stocks at the end of August 2013 will be 31 percent lower than the previous year, the U.S. Agriculture Department said May 10.
"Commodities remain a good long term investment given the background and the dovish central bank continues to unexpected supply disruptions," said Mihir Worah, who manages Pacific Investment Management Co. 's $ 22000000000 Commodity Real Return Strategy Fund from Newport Beach, California, in e- mails.
Money Flows
Investors pulled $ 815 million of commodity funds in the week ended May 9, according to data from the Cambridge, Massachusetts-based EPFR Global, which tracks the flow of money. That's the biggest outflows this year, said Cameron Brandt, director of research for the EPFR. Dana-gold and precious metals lost $ 467 million.
Gold is now only 1.1 percent higher this year at $ 1,584 per ounce in New York after removing most of its gains. These metals will rally to $ 1,840 within the next six months because he remains a "currency of last choice," said Goldman Sachs Group Inc. commodity analyst in a report May 9.
Gold bullish bets fell 20 percent to 92 498 contracts, the lowest since December 2008, CFTC data showed. Bet on a rally of silver fell 32 percent to 7159, the biggest drop since late December. Gold prices fell 3.7 percent last week, the highest in two months, as the dollar climbed, curbing demand for precious metals as alternative investments. Silver fell 5.1 percent to $ 28.89 per ounce.
Fort Shutters
Fortress Investment Group LLC (Pictures), the public private equity and hedge fund manager first in the U.S., said it would liquidate $ 500 million a commodity fund run by William Callanan after losing nearly 13 percent in four months.
The fort is the third commodity hedge fund shutter in the last six weeks. Billionaire trader John Arnold said in a letter obtained by Bloomberg on May 2 that it planned to close the Centaurus Energy Master Fund in Houston, and Pierre Andurand, who co-runs BlueGold Capital Management LLP, the fund $ 1 billion in London, said last month that client money will be refunded.
Precious metal prices decline, silver was the biggest loser at 3.09% while natural gas posted the most gains at 1.21%. Base metals remained mixed with copper and zinc posting gains while lead and nickel ended in the red.
-Crude oil markets were relatively calm for the week considering that the whole Iran issue was the focus point over the past months. This was reflected in prices, which moved down marginally. However, conditions still favour strong oil prices.
-Natural gas prices rebounded with a decent 1.21% gain. US weather has been forecasted to be warm over the coming weeks, which makes it difficult for gas prices to record any strong upmoves.
-In China, February trade deficit of $31.5 billion was its biggest ever since 2000, sparking concerns that the Chinese economy may indeed be heading to a major slowdown. Commodities like base metals and crude oil came under pressure during the week.
-In India, the Union Budget 2012/13 failed to impress any critic. The budget was focused more towards controlling the widening fiscal deficit, the target for the next fiscal year being at 5.1% of GDP. Current year growth is projected to be at a disappointing 6.9% but 2012/13 is expected to see growth at 7.6%.
-In the US, US Fed chairman Ben Bernanke stated his intention to continue the lose monetary policy. Industrial production for February failed to record any growth after a marginal 0.4% growth in January. Retail sales in February rose to 1.1% while Business inventories rose to 0.7% in January.
-In the Eurozone, investors continue to watch out on the impact of the CDS triggered by the Greek default. Trade balance in the region declined to $5.9 billion in January from $7.4 billion in December
-Precious metals declined for the week with silver moving down by more than 3%. Ben Bernanke disappointed the precious metals bulls and did not mention the possibility of QE3. Instead, he expressed belief that the is economy was improving. Weak Chinese trade balance also proved bearish for silver since China is a major consumer of the metal.
-Base metals were mostly under pressure despite copper and zinc posting gains, mostly on the back of China's weak trade balance.
-Copper inventories at Shanghai exchange monitored warehouses are expected to result in lower copper imports in March and April, Goldman Sachs reported.
-A major zinc mine in China remains closed and is expected to be bullish for Chinese zinc exports if the closure extends beyond 3 months.
-Crude oil markets were relatively calm for the week considering that the whole Iran issue was the focus point over the past months. This was reflected in prices, which moved down marginally. However, conditions still favour strong oil prices.
-Natural gas prices rebounded with a decent 1.21% gain. US weather has been forecasted to be warm over the coming weeks, which makes it difficult for gas prices to record any strong upmoves.
-In China, February trade deficit of $31.5 billion was its biggest ever since 2000, sparking concerns that the Chinese economy may indeed be heading to a major slowdown. Commodities like base metals and crude oil came under pressure during the week.
-In India, the Union Budget 2012/13 failed to impress any critic. The budget was focused more towards controlling the widening fiscal deficit, the target for the next fiscal year being at 5.1% of GDP. Current year growth is projected to be at a disappointing 6.9% but 2012/13 is expected to see growth at 7.6%.
-In the US, US Fed chairman Ben Bernanke stated his intention to continue the lose monetary policy. Industrial production for February failed to record any growth after a marginal 0.4% growth in January. Retail sales in February rose to 1.1% while Business inventories rose to 0.7% in January.
-In the Eurozone, investors continue to watch out on the impact of the CDS triggered by the Greek default. Trade balance in the region declined to $5.9 billion in January from $7.4 billion in December
-Precious metals declined for the week with silver moving down by more than 3%. Ben Bernanke disappointed the precious metals bulls and did not mention the possibility of QE3. Instead, he expressed belief that the is economy was improving. Weak Chinese trade balance also proved bearish for silver since China is a major consumer of the metal.
-Base metals were mostly under pressure despite copper and zinc posting gains, mostly on the back of China's weak trade balance.
-Copper inventories at Shanghai exchange monitored warehouses are expected to result in lower copper imports in March and April, Goldman Sachs reported.
-A major zinc mine in China remains closed and is expected to be bullish for Chinese zinc exports if the closure extends beyond 3 months.
Guar gum prices rose 15.76 percent, guar seed prices rose 15.31 percent, India’s guar complex prices rose to whopping heights on lower arrivals amid high demand from food sector, oil companies etc. The guar seed prices rose to 15.31% to Rs 25,370 per qtl from Rs 22,000 per qtl and guar gum up 15.76% to Rs 80,690 per qtl from Rs 69,700 per qtl during the last week period (9th March to 16th March 2012).
Guar gum and guar seed prices are expected to stay high until fresh arrivals reach Market and the next arrival is expected reach by around September. Even though Forward Market Commision took various measures to control the prices rise but the commodities continued to rally higher mainly on the back of high overseas and domestic demand.
Guar gum finds wide applications in the field of textile, paper, medicines, cosmetics, mining, explosives, food etc. Meanwhile, the exports of guar gum from April to November 2011 stood at 6.7 lakh tons showing a rise of 194% compared to 2.28 lakh tons during a year ago.
India’s total guar seed production is estimated at 16 lakh tons for 2011-12. India being the only supplier of Guar gum to the global markets accounting for 80% of the global exports, Indian exporters has monopoly in deciding the price trend.
Guar gum and guar seed prices are expected to stay high until fresh arrivals reach Market and the next arrival is expected reach by around September. Even though Forward Market Commision took various measures to control the prices rise but the commodities continued to rally higher mainly on the back of high overseas and domestic demand.
Guar gum finds wide applications in the field of textile, paper, medicines, cosmetics, mining, explosives, food etc. Meanwhile, the exports of guar gum from April to November 2011 stood at 6.7 lakh tons showing a rise of 194% compared to 2.28 lakh tons during a year ago.
India’s total guar seed production is estimated at 16 lakh tons for 2011-12. India being the only supplier of Guar gum to the global markets accounting for 80% of the global exports, Indian exporters has monopoly in deciding the price trend.
CGFCC Ivory Coast's cocoa and coffee body launch a campaign to inform farmers and operators in the industry about sector reforms, it said. "In the coming weeks, a major awareness campaign aimed at the various operators and producers in the domestic market will be undertaken.
Reforms which guarantee minimum prices to farmers in the hope of encouraging re-investment in the cocoa industry is also crucial to Ivory Coast winning International Monetary Fund-backed debt relief. The IMF says it wants to see the reform up and running for six months before giving the go-ahead.
"The campaign will focus on reform and the guaranteed price policy, with particular emphasis on the need for producers to deliver cocoa and coffee of good quality," Eric Koffi, head of operations at CGFCC.
Koffi said that the CGFCC initially focused on the forward sales of the 2012/13 crop, which were launched via an auctioning system on January 31, as the world's top producer looks to sell around 70-80 percent of its crop ahead of the harvest.
Reforms which guarantee minimum prices to farmers in the hope of encouraging re-investment in the cocoa industry is also crucial to Ivory Coast winning International Monetary Fund-backed debt relief. The IMF says it wants to see the reform up and running for six months before giving the go-ahead.
"The campaign will focus on reform and the guaranteed price policy, with particular emphasis on the need for producers to deliver cocoa and coffee of good quality," Eric Koffi, head of operations at CGFCC.
Koffi said that the CGFCC initially focused on the forward sales of the 2012/13 crop, which were launched via an auctioning system on January 31, as the world's top producer looks to sell around 70-80 percent of its crop ahead of the harvest.
Thermal coal output Indonesia as world top exporter thermal coal rise 8.3 percent in 2012. The thermal coal rising because miners increase production to take strong prices. This mean that production thermal coal Indonesia will be 390 mt in 2012. While thermal coal production in 2010 is 320 million tone and in 2011 is 354 million tone.
Indonesian coal is mined in East Kalimantan, Central Kalimantan, South Kalimantan and South Sumatra. Benchmark for Asian coal closed at AUD 116.55 per tone in the second March 2012.
Indonesian coal is mined in East Kalimantan, Central Kalimantan, South Kalimantan and South Sumatra. Benchmark for Asian coal closed at AUD 116.55 per tone in the second March 2012.
Global agro-chemical sector will focus more on biotech seeds due to strict environmental regulation, better return on investment from proprietary seeds and rising costs of new agrochemicals, according to Rabo bank report.
These factors have shifted the research and development (R&D) focus of agrochemical companies towards seed technology, which has resulted in a reduced share of patented products in the agrochemical market.
In 2010, R&D investments in biotech seeds surpassed investments in agrochemicals for the first time and this trend is expected to continue.
The main reasons for the increasing global acceptance of genetically modified (GM) crops are the positive effect on farmers’ margins, increasing government support and better returns.
This has squeezed the margin of the agrochemical producers and also with the low-cost agrochemicals flowing from India and China
India government is setting up Automatic Weather Stations (AWS) at 100 identified Krishi Vigyan Kendras (KVKs) across the country to enhance resilience of Indian agriculture to climate change and climate vulnerability to improve productivity.
This service will come into effect by fiscal 2012-13.
The stations will measure parameters such as temperature, humidity, wind speed and direction, rainfall, radiation and rate of evaporation and it will be stored in the Central Research Institute for Dryland Agriculture (CRIDA) in Hyderabad.
And the data will be made available for the farmers through print, television, radio etc.
Major aim of the introduction of such system is to provide accurate weather information to the farmers to improve the agriculture practices to enhance the agricultural production to meet the growing population of the country.
India is likely to produce around 250.75 million tons of food grains for 2011-12.
These factors have shifted the research and development (R&D) focus of agrochemical companies towards seed technology, which has resulted in a reduced share of patented products in the agrochemical market.
In 2010, R&D investments in biotech seeds surpassed investments in agrochemicals for the first time and this trend is expected to continue.
The main reasons for the increasing global acceptance of genetically modified (GM) crops are the positive effect on farmers’ margins, increasing government support and better returns.
This has squeezed the margin of the agrochemical producers and also with the low-cost agrochemicals flowing from India and China
India government is setting up Automatic Weather Stations (AWS) at 100 identified Krishi Vigyan Kendras (KVKs) across the country to enhance resilience of Indian agriculture to climate change and climate vulnerability to improve productivity.
This service will come into effect by fiscal 2012-13.
The stations will measure parameters such as temperature, humidity, wind speed and direction, rainfall, radiation and rate of evaporation and it will be stored in the Central Research Institute for Dryland Agriculture (CRIDA) in Hyderabad.
And the data will be made available for the farmers through print, television, radio etc.
Major aim of the introduction of such system is to provide accurate weather information to the farmers to improve the agriculture practices to enhance the agricultural production to meet the growing population of the country.
India is likely to produce around 250.75 million tons of food grains for 2011-12.
US grain commodity exporters face a "crisis of competitiveness" which is seeing foreign rivals raise market share, helped in corn by doubts over the quality of American supplies.
The US Grains Council, whose role is to promote the country's grain exports, warned of "rapidly changing market realities" which were eroding US pre-eminence in agricultural commodity shipments.
The group focused on corn, in which the US is, for the first time in 2011-12, to account for less than 50% of world shipments, thanks to the emergence of Ukraine as a major exporter.
America's exports will ease to 43.2m tonnes, or 46% of the world total, down from 52% last season, on US Department of Agriculture exports.
However, the US is also to be overtaken by Brazil as a soybean exporter, and in wheat is seeing its lead in shipments eroded by Australia and Russia.
"US producers face a crisis of competitiveness," the council said, noting an "intense battle" for share in export markets.
"Aggressive competitors in Argentina, Brazil and the Black Sea region… are ramping up production in response to high global prices for corn and other feed grains."
US producers "can hardly fault others for competing effectively for market share because, in large part, we taught them how to do it", the group said.
"But rising competition means US producers must look aggressively to emerging markets in which the US can earn a competitive edge."
The comments follow forecasts last week from the USDA that the US was over the next decade to continue to lose market share in exports of major crops including corn, soybeans and wheat and, to a lesser extent, cotton and sorghum.
In wheat, US shipments will represent 16% of the world total in 2021, down from an average of 23% over the past five years, the last decade, mainly due to increased shipments from the Black Sea.
The USGC highlighted that in corn, "the US cannot take market dominance for granted", noting "increasing self-sufficiency" in the rest of the world.
"Non-US demand continues to rise rapidly, prices remain high, and non-US producers are responding."
However, it also flagged the dent to demand for US shipments stoked by the poor-quality crop in 2009, when wet conditions delayed the harvest for weeks, leaving crop exposed to poor weather.
The council had logged "concerns" about US corn quality "in virtually every market around the world", with longer-standing complaints too about moisture content.
In the US too, corn buyers such as Smithfield Foods, the hog producer, complained over the quality of the 2009 harvest, in which moisture levels often came in at 20-30%, creating ripe conditions for the spread of fungi, including those which produce vomitoxin.
The US Grains Council, whose role is to promote the country's grain exports, warned of "rapidly changing market realities" which were eroding US pre-eminence in agricultural commodity shipments.
The group focused on corn, in which the US is, for the first time in 2011-12, to account for less than 50% of world shipments, thanks to the emergence of Ukraine as a major exporter.
America's exports will ease to 43.2m tonnes, or 46% of the world total, down from 52% last season, on US Department of Agriculture exports.
However, the US is also to be overtaken by Brazil as a soybean exporter, and in wheat is seeing its lead in shipments eroded by Australia and Russia.
"US producers face a crisis of competitiveness," the council said, noting an "intense battle" for share in export markets.
"Aggressive competitors in Argentina, Brazil and the Black Sea region… are ramping up production in response to high global prices for corn and other feed grains."
US producers "can hardly fault others for competing effectively for market share because, in large part, we taught them how to do it", the group said.
"But rising competition means US producers must look aggressively to emerging markets in which the US can earn a competitive edge."
The comments follow forecasts last week from the USDA that the US was over the next decade to continue to lose market share in exports of major crops including corn, soybeans and wheat and, to a lesser extent, cotton and sorghum.
In wheat, US shipments will represent 16% of the world total in 2021, down from an average of 23% over the past five years, the last decade, mainly due to increased shipments from the Black Sea.
The USGC highlighted that in corn, "the US cannot take market dominance for granted", noting "increasing self-sufficiency" in the rest of the world.
"Non-US demand continues to rise rapidly, prices remain high, and non-US producers are responding."
However, it also flagged the dent to demand for US shipments stoked by the poor-quality crop in 2009, when wet conditions delayed the harvest for weeks, leaving crop exposed to poor weather.
The council had logged "concerns" about US corn quality "in virtually every market around the world", with longer-standing complaints too about moisture content.
In the US too, corn buyers such as Smithfield Foods, the hog producer, complained over the quality of the 2009 harvest, in which moisture levels often came in at 20-30%, creating ripe conditions for the spread of fungi, including those which produce vomitoxin.
Chilli futures declined on profit booking by the traders due to higher arrivals from the fresh crop amid subdued export demand.
In NCDEX chilli April contract is trading at Rs.5288 per quintal, down by 1.26 per cent on 12:30 IST against the previous close.
In the morning session the contract traded at a range of Rs.5266-5364 per quintal. Open interest of the contract is 1255 lots and volume traded is 170 lots for the time being.
According to trade sources, export demand from neighboring countries like Sri Lanka, Bangladesh is also remaining poor which might have negative impact on prices. Domestic bulk buyers are also staying away from market in anticipation of further fall in prices.
In NCDEX chilli April contract is trading at Rs.5288 per quintal, down by 1.26 per cent on 12:30 IST against the previous close.
In the morning session the contract traded at a range of Rs.5266-5364 per quintal. Open interest of the contract is 1255 lots and volume traded is 170 lots for the time being.
According to trade sources, export demand from neighboring countries like Sri Lanka, Bangladesh is also remaining poor which might have negative impact on prices. Domestic bulk buyers are also staying away from market in anticipation of further fall in prices.
Commodities gained 6.6 percent and MSCI All-Country World Index (MXWD) of equities climbed 9.7 percent. Treasuries lost 0.5 percent, a Bank of America Corp. index (MXWD) shows.
Gold rose 9.9 percent to $1,722.20 an ounce this year on the Comex in New York. The Standard & Poor’s GSCI gauge of 24. Hedge funds and other money managers boosted wagers on higher prices by 57 percent since mid-January. They raised their net-long position by 8.6 percent to 173,172 futures and options in the week ended Feb. 7, the highest level since mid-September, Commodity Futures Trading Commission data show.
Ten of 14 people surveyed expect raw-sugar prices to drop next week. The commodity is up 1.8 percent this year at 23.72 cents a pound on ICE Futures U.S. in New York.
Eleven of 21 people surveyed anticipate lower corn prices next week, while 12 of 22 said soybeans will advance. Corn fell 0.3 percent to $6.4475 a bushel this year as soybeans rose 5.7 percent to $12.77 a bushel.
“By initiating further rounds of quantitative easing, central banks should be one of the supporting factors for commodity prices,” said Daniel Briesemann, an analyst at Commerzbank AG in Frankfurt. “The high uncertainty and growing risk aversion among market players surrounding the Greek debt saga should depress any meaningful price increases.”
Gold survey results: Bullish: 12 Bearish: 5 Hold: 5
Copper survey results: Bullish: 9 Bearish: 8 Hold: 7
Corn survey results: Bullish: 7 Bearish: 11 Hold: 3
Soybean survey results: Bullish: 12 Bearish: 9 Hold: 1
Raw sugar survey results: Bullish: 2 Bearish: 10 Hold: 2
White sugar survey results: Bullish: 2 Bearish: 9 Hold: 3
White sugar premium results: Widen: 5 Narrow: 6 Neutral: 3
Central banks are keeping interest rates at or near record lows and expanding stimulus measures to spur growth that the International Monetary Fund predicted on Jan. 24 will be 3.3 percent this year, down from a previous forecast of 4 percent. Greece is seeking more aid on top of the 110 billion euros ($145 billion) awarded in 2010 and Moody’s Investors Service cut the ratings of six European nations on Feb. 13.
Gold rose 9.9 percent to $1,722.20 an ounce this year on the Comex in New York. The Standard & Poor’s GSCI gauge of 24. Hedge funds and other money managers boosted wagers on higher prices by 57 percent since mid-January. They raised their net-long position by 8.6 percent to 173,172 futures and options in the week ended Feb. 7, the highest level since mid-September, Commodity Futures Trading Commission data show.
Ten of 14 people surveyed expect raw-sugar prices to drop next week. The commodity is up 1.8 percent this year at 23.72 cents a pound on ICE Futures U.S. in New York.
Eleven of 21 people surveyed anticipate lower corn prices next week, while 12 of 22 said soybeans will advance. Corn fell 0.3 percent to $6.4475 a bushel this year as soybeans rose 5.7 percent to $12.77 a bushel.
“By initiating further rounds of quantitative easing, central banks should be one of the supporting factors for commodity prices,” said Daniel Briesemann, an analyst at Commerzbank AG in Frankfurt. “The high uncertainty and growing risk aversion among market players surrounding the Greek debt saga should depress any meaningful price increases.”
Gold survey results: Bullish: 12 Bearish: 5 Hold: 5
Copper survey results: Bullish: 9 Bearish: 8 Hold: 7
Corn survey results: Bullish: 7 Bearish: 11 Hold: 3
Soybean survey results: Bullish: 12 Bearish: 9 Hold: 1
Raw sugar survey results: Bullish: 2 Bearish: 10 Hold: 2
White sugar survey results: Bullish: 2 Bearish: 9 Hold: 3
White sugar premium results: Widen: 5 Narrow: 6 Neutral: 3
Central banks are keeping interest rates at or near record lows and expanding stimulus measures to spur growth that the International Monetary Fund predicted on Jan. 24 will be 3.3 percent this year, down from a previous forecast of 4 percent. Greece is seeking more aid on top of the 110 billion euros ($145 billion) awarded in 2010 and Moody’s Investors Service cut the ratings of six European nations on Feb. 13.
Sotf Commodity information
Sugar rose to a one-week high as rain cut supplies from Thailand, the world’s second-largest exporter, while crops are delayed in Brazil, the top producer.
Thailand’s sugar production fell 1.9 percent to 4.57 million metric tons in the first 78 days of the season that began on Nov. 15, according to data from the Office of Cane and Sugar Board. Brazil’s sugar-cane output is delayed after two frosts in June killed crops maturing for the next harvest, according to Raizen, a joint venture of Royal Dutch Shell Plc and Cosan SA Industria e Comercio.
Raw sugar for March delivery jumped 2.3 percent to settle at 24.5 cents a pound at 2 p.m. on ICE Futures U.S. in New York.
Arabica-coffee futures for March delivery rose 1.3 percent to close at $2.188 a pound on ICE. Cocoa futures for March delivery declined 1.6 percent to $2,263 a ton in New York.
Grains and Oilseeds commodities
Wheat futures gained for the first time in three sessions on speculation that cold weather in France, Germany and Ukraine will damage dormant crops.
Temperatures reached minus 15 degrees Celsius (5 degrees Fahrenheit) in France’s Alsace and Lorraine regions yesterday, according to forecaster Meteo France. In northern Germany, where some fields lack a protective layer of snow, soil temperatures have dropped below minus 8 degrees Celsius, Deutscher Wetterdienst said.
Cold weather in the Black Sea region also has hurt crops.
Wheat futures for March delivery gained 1.2 percent to $6.685 a bushel on the Chicago Board of Trade. Prices fell 2 percent in the previous two sessions and are down 22 percent from a year ago.
Soybeans rose, capping the longest rally in five weeks, as China’s demand for U.S. supplies increased after unusually dry weather reduced output in South America.
Oilseed processors in China, the world’s largest consumer, ordered 10 cargoes last week from the U.S. for March delivery because prices were more competitive than South American costs, according to Grain.gov.cn.
Argentina’s crop will fall to 46.5 million metric tons, down from 49 million a year earlier, and farmers in Brazil will harvest 70 million, down from 75.5 million, Informa Economics Inc. said Feb. 3.
Soybean futures for March delivery rose less than 0.1 percent to close at $12.33 a bushel on the Chicago Board of Trade, capping the first five-session rally since late December.
Corn futures for March delivery fell less than 0.1 percent to $6.4425 a bushel, snapping a four-session rally. On Feb. 1, the price touched $6.50, the highest since Jan. 12, on speculation that dry weather would reduce South American yields.
Sugar rose to a one-week high as rain cut supplies from Thailand, the world’s second-largest exporter, while crops are delayed in Brazil, the top producer.
Thailand’s sugar production fell 1.9 percent to 4.57 million metric tons in the first 78 days of the season that began on Nov. 15, according to data from the Office of Cane and Sugar Board. Brazil’s sugar-cane output is delayed after two frosts in June killed crops maturing for the next harvest, according to Raizen, a joint venture of Royal Dutch Shell Plc and Cosan SA Industria e Comercio.
Raw sugar for March delivery jumped 2.3 percent to settle at 24.5 cents a pound at 2 p.m. on ICE Futures U.S. in New York.
Arabica-coffee futures for March delivery rose 1.3 percent to close at $2.188 a pound on ICE. Cocoa futures for March delivery declined 1.6 percent to $2,263 a ton in New York.
Grains and Oilseeds commodities
Wheat futures gained for the first time in three sessions on speculation that cold weather in France, Germany and Ukraine will damage dormant crops.
Temperatures reached minus 15 degrees Celsius (5 degrees Fahrenheit) in France’s Alsace and Lorraine regions yesterday, according to forecaster Meteo France. In northern Germany, where some fields lack a protective layer of snow, soil temperatures have dropped below minus 8 degrees Celsius, Deutscher Wetterdienst said.
Cold weather in the Black Sea region also has hurt crops.
Wheat futures for March delivery gained 1.2 percent to $6.685 a bushel on the Chicago Board of Trade. Prices fell 2 percent in the previous two sessions and are down 22 percent from a year ago.
Soybeans rose, capping the longest rally in five weeks, as China’s demand for U.S. supplies increased after unusually dry weather reduced output in South America.
Oilseed processors in China, the world’s largest consumer, ordered 10 cargoes last week from the U.S. for March delivery because prices were more competitive than South American costs, according to Grain.gov.cn.
Argentina’s crop will fall to 46.5 million metric tons, down from 49 million a year earlier, and farmers in Brazil will harvest 70 million, down from 75.5 million, Informa Economics Inc. said Feb. 3.
Soybean futures for March delivery rose less than 0.1 percent to close at $12.33 a bushel on the Chicago Board of Trade, capping the first five-session rally since late December.
Corn futures for March delivery fell less than 0.1 percent to $6.4425 a bushel, snapping a four-session rally. On Feb. 1, the price touched $6.50, the highest since Jan. 12, on speculation that dry weather would reduce South American yields.
In 2012, it is thought to be a golden year for coffee commodity production. Some exporters claimed the season-friendly coffee making maximum growth of coffee plants. Estimated in 2012 Lampung coffee production could reach 250 thousand tons rose 30 percent over last year, that's only 190 thousand tons.
This was revealed by the former Chairman of the Association of Indonesian Coffee Exporters (AICE) and PR Herman DPD Lampung Lampung AICE Azischan Syatib when met at Jalan Pattimura AICE office. "60 percent of the highlands, 40 percent of the lowlands," said Herman, Tuesday (07/02/2012).
In contrast to last year, where a prolonged drought and the impact the collapse of the coffee flower, in the year tend to be sunny weather. The signs are starting to look like at the beginning of the year, despite the rain, but still within levels fertilize and do not interfere with the coffee flowers.
Friendly climate conditions, Herman added, making the normal cycle of coffee production is to be harvested lowland April, May, June, and the plateau in July August, September, October. Herman said even in 2013, ensured the production of Lampung coffee in the beginning of this year's increased influence.
This was revealed by the former Chairman of the Association of Indonesian Coffee Exporters (AICE) and PR Herman DPD Lampung Lampung AICE Azischan Syatib when met at Jalan Pattimura AICE office. "60 percent of the highlands, 40 percent of the lowlands," said Herman, Tuesday (07/02/2012).
In contrast to last year, where a prolonged drought and the impact the collapse of the coffee flower, in the year tend to be sunny weather. The signs are starting to look like at the beginning of the year, despite the rain, but still within levels fertilize and do not interfere with the coffee flowers.
Friendly climate conditions, Herman added, making the normal cycle of coffee production is to be harvested lowland April, May, June, and the plateau in July August, September, October. Herman said even in 2013, ensured the production of Lampung coffee in the beginning of this year's increased influence.
Commodity market - March corn futures closed 6 cents lower at $6.05 1/2. The March soybean contract opened 6 cents lower at $11.76 1/4. The March wheat futures opened 5 1/4 cents lower at $5.99 3/4. The March soymeal futures opened $2.10 per short ton lower at $305.00. The March soyoil futures opened $0.48 lower at $50.97.
In the outside markets, the NYMEX crude oil is $1.18 per barrel lower, the dollar is higher and the Dow Jones Industrials are down 135 points.
The Friday market continued to react to the negative USDA Crop Production and Supply/Demand Reports from Thursday. In Addition, wetter forecasts for South America's dry crops pressured the grain markets Friday, according to traders.
In the outside markets, the NYMEX crude oil is $1.18 per barrel lower, the dollar is higher and the Dow Jones Industrials are down 135 points.
The Friday market continued to react to the negative USDA Crop Production and Supply/Demand Reports from Thursday. In Addition, wetter forecasts for South America's dry crops pressured the grain markets Friday, according to traders.
Infocommodity.com - Prices of orange juice futures rebounded from the biggest two-day slump since 2008 on renewed concern that a U.S. government probe of imports from Brazil will tighten supplies.
The Food and Drug Administration said it will detain all imports that contain carbendazim, a fungicide that isn’t approved for oranges in the U.S. Yesterday, the U.S. Department of Agriculture trimmed its crop forecast for Florida, the world’s largest grower after Brazil, by 2 percent. The estimate didn’t include damage from frigid temperatures last week.
“The realization that FDA will test all imports is probably driving” prices up, Jack Scoville, a vice president at Price Futures Group in Chicago, said today in an e-mail. “The damage to Florida, if any, is unknown.”
Futures prices jumped 9.2 percent in the past two weeks, and on Jan. 10 reached the highest in almost five years. The rally may boost costs for companies including PepsiCo Inc. (PEP), the Purchase, New York-based producer of Tropicana juices, and Coca- Cola Co. (KO), which makes Minute Maid.
Orange juice for March delivery rallied 3.6 percent to settle at $1.846 a pound at 2 p.m. on ICE Futures U.S. in New York, after jumping as much as the exchange’s 20-cent limit, or 11 percent. The gain of 3.9 percent for the week was the fourth straight advance.
“This testing could turn out to take a while, not just a quick bump in the road,” Scoville said. “That is what has people buying again.”
The U.S. is testing “imports as they come in,” Siobhan DeLancey, an FDA spokeswoman, said yesterday in an e-mail. “We have three preliminary test results that are negative for carbendazim. Once those results are final, we’ll be allowing the shipments to enter the country.”
Concern that the FDA probe and frigid weather in Florida will limit supplies sent futures on Jan. 10 to $2.0775, the highest since March 2007. Prices plunged 14 percent during the previous two days, after the exchange raised the minimum cash margin needed for speculators to post to take a futures position, and as forecasters called for temperatures in Florida to remain above freezing.
There are “no changes” to Florida’s weather in the next few days, Kyle Tapley, a meteorologist at Gaithersburg, Maryland-based MDA Information Systems, said today in an e-mail. Temperatures are still expected “to remain above frost levels in the citrus belt,” he said.
Coca Cola said Jan. 11 that it had brought the use of the fungicide by some Brazilian orange growers to the FDA’s attention. The Atlanta-based company said in a statement that Brazilian orange juice is safe and it will take guidance from the FDA in resolving the situation.
Traders “are waiting for more definite news from the FDA to get some direction,” Jim Garasz, a principal at Transworld Futures in Tampa, Florida, said today in a telephone interview.
“If we can hold this rally, we will be looking at the resistance around $2, first,” Garasz said. “If we break above that, we could then have a push into the next resistance around $2.10.”
The Food and Drug Administration said it will detain all imports that contain carbendazim, a fungicide that isn’t approved for oranges in the U.S. Yesterday, the U.S. Department of Agriculture trimmed its crop forecast for Florida, the world’s largest grower after Brazil, by 2 percent. The estimate didn’t include damage from frigid temperatures last week.
“The realization that FDA will test all imports is probably driving” prices up, Jack Scoville, a vice president at Price Futures Group in Chicago, said today in an e-mail. “The damage to Florida, if any, is unknown.”
Futures prices jumped 9.2 percent in the past two weeks, and on Jan. 10 reached the highest in almost five years. The rally may boost costs for companies including PepsiCo Inc. (PEP), the Purchase, New York-based producer of Tropicana juices, and Coca- Cola Co. (KO), which makes Minute Maid.
Orange juice for March delivery rallied 3.6 percent to settle at $1.846 a pound at 2 p.m. on ICE Futures U.S. in New York, after jumping as much as the exchange’s 20-cent limit, or 11 percent. The gain of 3.9 percent for the week was the fourth straight advance.
“This testing could turn out to take a while, not just a quick bump in the road,” Scoville said. “That is what has people buying again.”
The U.S. is testing “imports as they come in,” Siobhan DeLancey, an FDA spokeswoman, said yesterday in an e-mail. “We have three preliminary test results that are negative for carbendazim. Once those results are final, we’ll be allowing the shipments to enter the country.”
Concern that the FDA probe and frigid weather in Florida will limit supplies sent futures on Jan. 10 to $2.0775, the highest since March 2007. Prices plunged 14 percent during the previous two days, after the exchange raised the minimum cash margin needed for speculators to post to take a futures position, and as forecasters called for temperatures in Florida to remain above freezing.
There are “no changes” to Florida’s weather in the next few days, Kyle Tapley, a meteorologist at Gaithersburg, Maryland-based MDA Information Systems, said today in an e-mail. Temperatures are still expected “to remain above frost levels in the citrus belt,” he said.
Coca Cola said Jan. 11 that it had brought the use of the fungicide by some Brazilian orange growers to the FDA’s attention. The Atlanta-based company said in a statement that Brazilian orange juice is safe and it will take guidance from the FDA in resolving the situation.
Traders “are waiting for more definite news from the FDA to get some direction,” Jim Garasz, a principal at Transworld Futures in Tampa, Florida, said today in a telephone interview.
“If we can hold this rally, we will be looking at the resistance around $2, first,” Garasz said. “If we break above that, we could then have a push into the next resistance around $2.10.”
Cattle futures prices rose as animal supplies dwindled in the U.S. and global beef demand climbed, boosting meat costs for restaurants including Sonic Corp. (SONC), a hamburger chain.
In the U.S., consumers will pay as much as 5 percent more for beef this year, more than other food group except seafood, after the meat rose as much as 10 percent last year, the government has estimated. The cattle herd was the smallest since at least 1973 as of July 1 after a drought in Texas cut supplies. Beef exports surged 25 percent in the 10 months ended Oct. 31 from a year earlier.
Rising global demand and the shrinking herd in the U.S., the world’s largest beef producer, spurred a 12 percent increase in cattle futures last year, the fifth-biggest gain among components in the Standard & Poor’s GSCI Spot Index of 24 raw materials. Retail beef reached an all-time high in November, signaling higher costs for Oklahoma City-based Sonic and Ruth’s Hospitality Group Inc. (RUTH), a steakhouse owner.
“Of all the commodities, the cattle are one that you really are going to have over time tighter supplies,” Don Roose, the president of U.S. Commodities Inc., said in a telephone interview from West Des Moines, Iowa. “The demand has been pretty strong on the export front.”
Cattle futures for April delivery climbed 0.9 percent to close at $1.264 a pound at 1 p.m. on the Chicago Mercantile Exchange. After the settlement, the price reached $1.2645 in electronic trading, the highest for a most-active contract since the commodity began trading on the CME in 1964.
Beef-export sales in the four weeks ended Jan. 5 climbed 19 percent from a year earlier, according to the U.S. Department of Agriculture. Retail prices rose to a record $4.504 a pound in November, the most-recent government data show.
Beef is a “challenge” for Ruth’s Hospitality Group, the Heathrow, Florida-based owner of upscale steakhouses, Chief Financial Officer Arne Haak said yesterday in a presentation. Sonic, a drive-in chain, said that beef was among its “primary cost drivers” in the quarter ended Nov. 30.
Meatpackers slaughtered 512,000 head of cattle this week through yesterday, up 4.1 percent from a year earlier, USDA data show. Beef processors seeking spot deliveries paid $1.2366 a pound on average for the animals this week, up 2.1 percent from last week.
“The packers are still going to want to buy cattle,” Lane Broadbent, a vice president at KIS Futures Inc. in Oklahoma City, said in a telephone interview. “It looks like the sellers have got the upper hand here. It’s been pretty spectacular that we’ve had demand show up like we’ve had.”
Feeder-cattle futures for March settlement gained 0.4 percent to $1.52375 a pound on the CME. Earlier, the price reached a record $1.52775.
Feedlots buy year-old animals that weigh 500 pounds (227 kilograms) to 800 pounds, called feeders. The cattle are fattened on corn for about four to five months until they weigh about 1,200 pounds, when they are sold to meatpackers.
“Feedlots, as they’re buying new replacements, they’re finding sharply lower supplies and are paying sharply higher prices,” Rich Nelson, the director of research at Allendale Inc. in McHenry, Illinois, said in a telephone interview. “This supply issue is now showing up, and we have to deal with it.”
Hog futures for April settlement rose 0.5 percent to 87.05 cents a pound in Chicago. Earlier, the price reached 87.525 cents, the highest for the most-active contract since Dec. 9.
source: bloomberg.com
In the U.S., consumers will pay as much as 5 percent more for beef this year, more than other food group except seafood, after the meat rose as much as 10 percent last year, the government has estimated. The cattle herd was the smallest since at least 1973 as of July 1 after a drought in Texas cut supplies. Beef exports surged 25 percent in the 10 months ended Oct. 31 from a year earlier.
Rising global demand and the shrinking herd in the U.S., the world’s largest beef producer, spurred a 12 percent increase in cattle futures last year, the fifth-biggest gain among components in the Standard & Poor’s GSCI Spot Index of 24 raw materials. Retail beef reached an all-time high in November, signaling higher costs for Oklahoma City-based Sonic and Ruth’s Hospitality Group Inc. (RUTH), a steakhouse owner.
“Of all the commodities, the cattle are one that you really are going to have over time tighter supplies,” Don Roose, the president of U.S. Commodities Inc., said in a telephone interview from West Des Moines, Iowa. “The demand has been pretty strong on the export front.”
Cattle futures for April delivery climbed 0.9 percent to close at $1.264 a pound at 1 p.m. on the Chicago Mercantile Exchange. After the settlement, the price reached $1.2645 in electronic trading, the highest for a most-active contract since the commodity began trading on the CME in 1964.
Beef-export sales in the four weeks ended Jan. 5 climbed 19 percent from a year earlier, according to the U.S. Department of Agriculture. Retail prices rose to a record $4.504 a pound in November, the most-recent government data show.
Beef is a “challenge” for Ruth’s Hospitality Group, the Heathrow, Florida-based owner of upscale steakhouses, Chief Financial Officer Arne Haak said yesterday in a presentation. Sonic, a drive-in chain, said that beef was among its “primary cost drivers” in the quarter ended Nov. 30.
Meatpackers slaughtered 512,000 head of cattle this week through yesterday, up 4.1 percent from a year earlier, USDA data show. Beef processors seeking spot deliveries paid $1.2366 a pound on average for the animals this week, up 2.1 percent from last week.
“The packers are still going to want to buy cattle,” Lane Broadbent, a vice president at KIS Futures Inc. in Oklahoma City, said in a telephone interview. “It looks like the sellers have got the upper hand here. It’s been pretty spectacular that we’ve had demand show up like we’ve had.”
Feeder-cattle futures for March settlement gained 0.4 percent to $1.52375 a pound on the CME. Earlier, the price reached a record $1.52775.
Feedlots buy year-old animals that weigh 500 pounds (227 kilograms) to 800 pounds, called feeders. The cattle are fattened on corn for about four to five months until they weigh about 1,200 pounds, when they are sold to meatpackers.
“Feedlots, as they’re buying new replacements, they’re finding sharply lower supplies and are paying sharply higher prices,” Rich Nelson, the director of research at Allendale Inc. in McHenry, Illinois, said in a telephone interview. “This supply issue is now showing up, and we have to deal with it.”
Hog futures for April settlement rose 0.5 percent to 87.05 cents a pound in Chicago. Earlier, the price reached 87.525 cents, the highest for the most-active contract since Dec. 9.
source: bloomberg.com
Global corn production for 2011-2012 is projected at a new record high of 867.5 million tons, despite a 3.5-million-ton decline year-to-year in the U.S. Foreign corn production is expected to be up 43.4 million tons from 2010-2011. China 2011-2012 production is raised 7.3 million tons this month based on the recently released estimate from the National Bureau of Statistics. Slightly higher area and a 3% increase in yields from the previous forecast boost this year’s crop to a record 191.8 million tons. This year’s yield estimate is up 3% (3 bu./acre) from the previous record in 2008-2009 and up 9% (8 bu.) from the recent low in 2009-2010. Weather was generally favorable for this year’s crop; record yields were reported despite summer conditions in the northeast growing areas that were somewhat warmer and drier than in 2008-2009. Corn production is also raised 1.0 million tons for EU-27 and 0.7 million tons for Canada based on the latest government reports.
U.S. feed grain ending stocks for 2011-2012 are projected slightly higher with a small decrease in domestic corn use and a small increase in oats imports. Corn food, seed and industrial use is lowered 5 million bushels with early marketing-year corn use for sweeteners down slightly year on year. Projected corn ending stocks rise 5 million bushels to 848 million.
The 2011-2012 season-average farm price for corn is projected 30¢ lower on each end of the range to $5.90-6.90/bu. Corn prices received by producers have been reported 40-50¢/bu. below prevailing cash market bids reflecting apparent deliveries of grain that was forward priced below $6/bu. ahead of planting this past spring. Declines in futures prices since early November have also tempered the outlook for seasonal price gains over the coming months.
Global coarse grain supplies for 2011-2012 are projected 7.4 million tons higher as lower beginning stocks for corn and barley are more than offset by an 8.5-million-ton increase in corn production, mostly reflecting higher output from China. Global corn beginning stocks for 2011-2012 are reduced 0.8 million tons, with a downward revision to 2010-2011 production for South Africa.
World coarse grain trade for 2011-2012 is mostly unchanged this month with corn and sorghum imports and exports down slightly, but partly offset by small increases for barley. Corn imports are lowered 0.5 million tons for EU-27 with the larger crop and lower expected shipments from Serbia. Global corn consumption is raised mostly reflecting a 2.0-million-ton increase in China corn feeding. Global corn ending stocks are projected 5.6 million tons higher, mostly on increased stocks in China. At the projected 127.2 million tons, world ending stocks remain at a five-year low.
U.S. feed grain ending stocks for 2011-2012 are projected slightly higher with a small decrease in domestic corn use and a small increase in oats imports. Corn food, seed and industrial use is lowered 5 million bushels with early marketing-year corn use for sweeteners down slightly year on year. Projected corn ending stocks rise 5 million bushels to 848 million.
The 2011-2012 season-average farm price for corn is projected 30¢ lower on each end of the range to $5.90-6.90/bu. Corn prices received by producers have been reported 40-50¢/bu. below prevailing cash market bids reflecting apparent deliveries of grain that was forward priced below $6/bu. ahead of planting this past spring. Declines in futures prices since early November have also tempered the outlook for seasonal price gains over the coming months.
Global coarse grain supplies for 2011-2012 are projected 7.4 million tons higher as lower beginning stocks for corn and barley are more than offset by an 8.5-million-ton increase in corn production, mostly reflecting higher output from China. Global corn beginning stocks for 2011-2012 are reduced 0.8 million tons, with a downward revision to 2010-2011 production for South Africa.
World coarse grain trade for 2011-2012 is mostly unchanged this month with corn and sorghum imports and exports down slightly, but partly offset by small increases for barley. Corn imports are lowered 0.5 million tons for EU-27 with the larger crop and lower expected shipments from Serbia. Global corn consumption is raised mostly reflecting a 2.0-million-ton increase in China corn feeding. Global corn ending stocks are projected 5.6 million tons higher, mostly on increased stocks in China. At the projected 127.2 million tons, world ending stocks remain at a five-year low.
Commodity price index rose one per cent in Scotiabank as a sharp rebound in oil and firmer base metal prices helped reverse a three-month slide. Other commodities that have done well over the year are premium-grade hard coking coal from Western Canada, potash and hogs and cattle as a result of herd liquidation across North America Heavy and light crude oil — Hardisty, Alta., heavy and Edmonton light par crude — rounded out the Top 10 in 2011 and are among the bank's top picks for investors in 2012. Gold was in seventh place with a 14.6 per cent gain from late 2010 through mid-December 2011.
Scotiabank all items index now is 6.7 per cent above year-earlier levels and will likely end 2011 just above where it was a year ago. Scotiabank says that while most commodity prices remain at profitable levels, there has been a marked loss of momentum after an 18 per cent year-over-year gain in late 2010.
London PM Fix for gold surged by 38.2 per cent from US$1,390.55 per ounce in December 2010 to a record high in intraday trading of US$1,921.18 on September 6. However, the precious metal fell back to US$1,594 on December 16. The star performers of 2011 among the 32 commodities covered by the index were sulphur, a commodity used in DAP fertilizers, which came in No. 1.
Scotiabank all items index now is 6.7 per cent above year-earlier levels and will likely end 2011 just above where it was a year ago. Scotiabank says that while most commodity prices remain at profitable levels, there has been a marked loss of momentum after an 18 per cent year-over-year gain in late 2010.
London PM Fix for gold surged by 38.2 per cent from US$1,390.55 per ounce in December 2010 to a record high in intraday trading of US$1,921.18 on September 6. However, the precious metal fell back to US$1,594 on December 16. The star performers of 2011 among the 32 commodities covered by the index were sulphur, a commodity used in DAP fertilizers, which came in No. 1.
The survey shows that commodities traders anticipating gains in corn and soybeans and a decrease in copper and raw sugar weeks later. Gold traders are more bullish as investors bought the metal at the fastest pace in a year to protect their wealth from rising European debt crisis.
The fact that occur in commodities trading today
Investors are now making bets $ 130.2 billion in gold and held a record 2,358.2 tons of gold through ETPs.
Bullion rose 21 percent to $ 1,717.80 an ounce on the Comex this year in New York
Standard & Poor's GSCI Index of 24 commodities rose 1.8 percent and the MSCI All-Country World Index retreated 8.9 percent equity.
Raw sugar retreated 27 percent this year to 23.32 cents a pound on ICE Futures U.S. in New York.
Golden survey results: Bullish: 18 Bearish: 2 Hold: 6
Copper survey results: Bullish: 9 Bearish: Hold 12: 5
Corn survey results: Bullish: 13 Bearish: 8 Hold: 4
Soybean survey results: Bullish: Hold 10:: 14 Bearish 2
Raw sugar survey results: Bullish: Bearish 2: 7 Hold: 1
White sugar survey results: Bullish: Bearish 2: 8 Hold: 0
Premium white sugar results: Widen: 4 Narrow: 4 Neutral: 2
The fact that occur in commodities trading today
Investors are now making bets $ 130.2 billion in gold and held a record 2,358.2 tons of gold through ETPs.
Bullion rose 21 percent to $ 1,717.80 an ounce on the Comex this year in New York
Standard & Poor's GSCI Index of 24 commodities rose 1.8 percent and the MSCI All-Country World Index retreated 8.9 percent equity.
Raw sugar retreated 27 percent this year to 23.32 cents a pound on ICE Futures U.S. in New York.
Golden survey results: Bullish: 18 Bearish: 2 Hold: 6
Copper survey results: Bullish: 9 Bearish: Hold 12: 5
Corn survey results: Bullish: 13 Bearish: 8 Hold: 4
Soybean survey results: Bullish: Hold 10:: 14 Bearish 2
Raw sugar survey results: Bullish: Bearish 2: 7 Hold: 1
White sugar survey results: Bullish: Bearish 2: 8 Hold: 0
Premium white sugar results: Widen: 4 Narrow: 4 Neutral: 2
High consumption of corn commodity make China import corn about 7 million tons in 2012-2013 after 4 million metric tons in 2011-2012. Soybean imports will likely rise 12% on year in 2011-12 to 58.5 million tons under a baseline scenario, and by 15% or more to exceed 60 million tons in best-case.
Sleeping in China Economy next year is unlikely to weaken the country's agricultural demand, since the government can secure global supplies to replenish low domestic inventories. As inflation eases and crush margins improve, Rabobank forecast a rebound in China palm oil demand in 2011-12, up 5% to a record 6 million tons.
In the U.S., Corn basis levels at the U.S. Gulf slipped 3 cents for the spot month. Soybean Gulf basis levels, however, jumped 1 to 5 cents versus futures, according to U.S. Department of Agriculture data. Cash grain markets remain strong versus futures prices, but could begin to soften as grain begins to move more freely.
A lack of farmer selling has boosted cash market prices and limited losses in futures throughout the fall. Expectations that prices could go higher and farmers' stable financial positions after a year of sharply higher crop prices have encouraged farmers to hold on to supplies.
In first week December 2011 Cash corn's Chicago Board of Trade futures shrunk to 8 1/2 cents, from 11 1/2 cents at the start of the week, according to a national cash grain index maintained by the Minneapolis Grain Exchange. Cash soybeans' discount to January CBOT futures shrunk 1 1/2 cents during that time period, to 43 1/2 cents.
Sleeping in China Economy next year is unlikely to weaken the country's agricultural demand, since the government can secure global supplies to replenish low domestic inventories. As inflation eases and crush margins improve, Rabobank forecast a rebound in China palm oil demand in 2011-12, up 5% to a record 6 million tons.
In the U.S., Corn basis levels at the U.S. Gulf slipped 3 cents for the spot month. Soybean Gulf basis levels, however, jumped 1 to 5 cents versus futures, according to U.S. Department of Agriculture data. Cash grain markets remain strong versus futures prices, but could begin to soften as grain begins to move more freely.
A lack of farmer selling has boosted cash market prices and limited losses in futures throughout the fall. Expectations that prices could go higher and farmers' stable financial positions after a year of sharply higher crop prices have encouraged farmers to hold on to supplies.
In first week December 2011 Cash corn's Chicago Board of Trade futures shrunk to 8 1/2 cents, from 11 1/2 cents at the start of the week, according to a national cash grain index maintained by the Minneapolis Grain Exchange. Cash soybeans' discount to January CBOT futures shrunk 1 1/2 cents during that time period, to 43 1/2 cents.
Prices closed the week under pressure with the industrially biased precious metals suffering the largest losses. Silver closed Friday 2.5% lower at $30.96/oz, a five-week low, losing 4% over the week; while Palladium lost 2.2% on Friday and 6.5% over the week to close at $562.3/oz, its weakest close since 4 October last year, said Barclays in a research note.
According to Barclays, Gold prices settled 0.9% lower on Friday and 2.5% down on the week. The heightened uncertainty and European government bond markets remaining under pressure continue to weigh upon prices and the demand outlook.
Economists with Barclays notes rising yields reflect the depth of the European debt problem and it appears the fiscally stronger sovereigns are reaching their limits in terms of supporting their fiscally weaker counterparts.
Bank believes the euro area is likely to have entered into a recession this quarter. Gold prices have struggled to gain traction as the need for liquidity caps upward momentum, and prices have been unable to escape unscathed from the weaker equity markets and the dollar strengthening further against the euro to levels last seen in early October.
Investment demand remains positive with metal held in trust across the physically backed gold ETPs unchanged at record levels on Friday, while physical demand remains sensitive to prices. PGM ETPs softened further on Friday with Platinum losing 4.5koz and Palladium holdings falling by 7.3koz.
According to Barclays, Gold prices settled 0.9% lower on Friday and 2.5% down on the week. The heightened uncertainty and European government bond markets remaining under pressure continue to weigh upon prices and the demand outlook.
Economists with Barclays notes rising yields reflect the depth of the European debt problem and it appears the fiscally stronger sovereigns are reaching their limits in terms of supporting their fiscally weaker counterparts.
Bank believes the euro area is likely to have entered into a recession this quarter. Gold prices have struggled to gain traction as the need for liquidity caps upward momentum, and prices have been unable to escape unscathed from the weaker equity markets and the dollar strengthening further against the euro to levels last seen in early October.
Investment demand remains positive with metal held in trust across the physically backed gold ETPs unchanged at record levels on Friday, while physical demand remains sensitive to prices. PGM ETPs softened further on Friday with Platinum losing 4.5koz and Palladium holdings falling by 7.3koz.
Grain markets opened Black Friday's abbreviated trading session mixed, according to private sources. In the outside markets, the NYMEX crude oil is $0.70 per barrel higher, the dollar is higher and the Dow Jones Industrials are up 97 points.
Dec. corn futures opened 3/4 of a cent higher at $5.88. The Jan. soybean contract opened 6 1/4 cents lower at $11.16 1/2. The Dec. wheat futures opened 2 1/4 cents higher at $5.81. The Jan. soymeal futures opened $0.80 per short ton higher at $283.70. The Jan. soyoil futures opened $0.38 lower at $48.92.
Light volume and unfavorable outside markets are pressuring the corn, soybean markets Friday. CME Group trading closes at 12:00-Noon CST.
Dec. corn futures opened 3/4 of a cent higher at $5.88. The Jan. soybean contract opened 6 1/4 cents lower at $11.16 1/2. The Dec. wheat futures opened 2 1/4 cents higher at $5.81. The Jan. soymeal futures opened $0.80 per short ton higher at $283.70. The Jan. soyoil futures opened $0.38 lower at $48.92.
Light volume and unfavorable outside markets are pressuring the corn, soybean markets Friday. CME Group trading closes at 12:00-Noon CST.
