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Ag News

Commodities Rally on Better News Out of the EU

  Program 1365  (download mp3)
  Posted on Tue, Jun 15, 2010


Further broader-market advances and recovering fundamentals landed Chicago Mercantile Exchange hogs Monday on solid ground for a second straight session, pork bellies closed higher at on buying in the adjacent lean hog pit. June hogs closed up 15 at 77.92, July bellies gained 130 to 97.25.
 

Live cattle at the Merc finished in positive trading territory on short-covering and Friday's stout equities-sector performance that spilled over into Monday, feeder cattle settled firm on short-covering and live cattle's rally. June live cattle closed up 27 at 89.77, August feeders closed up 35 at 110.42.

Minneapolis Grain Exchange wheat futures led a rally in the U.S. wheat markets Monday on concerns about Canada's production potential, but the advances looked overdone to some analysts. July wheat in Chicago ended up 10 3/4 at $4.51, July wheat in KC jumped 12 1/2 to $4.79 and MGE July wheat soared 21 1/2 to $5.23.
 

Corn futures rallied Monday, climbing near two-week highs on fresh export demand, Chinese weather concerns and borrowed strength from other markets. July corn closed at $3.53 up 4 ¼.
 

Soybean futures climbed Monday, rallying to 1-month intra day highs on support from a sinking U.S. dollar, Soy oil futures bounced Monday, buoyed by spillover support from soybeans, Soy meal futures inched higher, underpinned by support from higher soybean prices. July soybeans gained 5 ¼ to $9.51, July soy oil gained 49 to 37.39, July soy meal ended 30 at $290.00.

ICE cotton futures posted gains as bullish macroeconomic sentiment and a weak dollar lifted commodities prices. Dec cotton gained 53 to 79.15.

Gold fell Monday, after losing some of its recent safe-haven luster as equities and the euro rallied after stronger economic data in Europe. August Gold fell $5.70 to $1,224.50 an ounce, July Silver rose 18 cents, to $18.41.
 

Crude futures rose Monday as strength in equities and the euro bolstered investors' confidence in economic recovery, despite a downgrade of Greece's debt rating.

July crude gained $1.34 to $75.12 a barrel, July gasoline gained 2.7 cents to $2.07 a gallon, and July distillates gained 2 cents to $2.02 a gallon.
 

Natural gas futures climbed above the $5 mark on Monday, lifted by forecasts for hot weather, as a tropical disturbance in the Atlantic raised the specter of a busy 2010 Atlantic hurricane season. July Natural gas jumped 22.5 cents to $5.00.
 

A triple-digit rally on Wall Street evaporated on Monday as a steep downgrade of Greece’s debt into junk territory allowed the markets’ European sovereign debt concerns to resurface and overshadowed the economic optimism that had swept global markets in recent days. The Dow dropped 20 to close at 10,190, the Nasdaq closed at 2,243, up a fraction and the S&P 500 dropped almost 2 to 1,089.
 

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