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Ag News

Bitterly Cold Weather Has Little Effect on Energy Markets

  Program 3268  (download mp3)
  Posted on Tue, Dec 28, 2010


U.S. hog futures closed mixed Monday but front-month February ended the day with a modest gain just ahead of the government's quarterly hogs and pigs report. February lean hogs were up 12 at 78.85, April hogs were off 2 at 82.75.

Live cattle futures prices got late support and renewed buying interest after a mid-morning report showed higher wholesale beef prices, Feeder cattle were mostly lower at the close of pit trading, pressured by rising corn futures prices. Dec live cattle gained 90 to $1.04, Jan feeders dropped 75 $1.20.

US wheat futures finish slightly lower as drier weather offers window for farmers to advance harvest in eastern Australia. March wheat in Chicago ended down 2 3/4 at $7.80, March wheat in KC fell 1 1/4 to $8.43, and MGE March wheat slid 2 to $8.66.

U.S. corn futures finish slightly higher on heat and dryness in Argentina, the world's second-largest corn exporter after the U.S. March corn closed up 1 1/4 at $6.15.

U.S. soybean futures finish solidly higher on threatening Argentine weather, US soy-product futures end higher, as well. Jan soybeans end up 23 1/2c at $13.73, March soy meal closed up $6.90 at $370.30 and March soy oil closed up 52 at 57.75

ICE cotton fell Monday in light trade but ended far from the consecutive limit-down closings on the heels of a speedy run-up that broke recent record highs last week. The March contract shed 236 to end at $1.45, May closed at $1.33, down 143.

Gold prices crept higher Monday on thin trading volumes, a weaker dollar and year-end position squaring.
February gold gained $2.40 to $1,382.90 an ounce, Mar silver closed at $29.25, down 7.3 cents.

The fierce blizzard that blanketed much of the eastern seaboard may have sent chilly northeasterners scurrying to the furnace for warmth, but it failed to lift the price of one commodity closely tied to cold weather: heating oil. January heating oil fell 2.42 cents to $2.51 a gallon, January gasoline gave up 2.17 cents to close at $2.42 a gallon, and February crude finished down 51 cents at $91 a barrel.

Natural gas futures ended higher Monday, bouncing back after briefly dipping below $4. January Natural gas gained 2.9 cents to $4.11.

Wall Street turned mixed as the bulls look to shrug off China's moves to cool off its economy. The Dow lost 18 to close at 11,555, the Nasdaq closed at 2,667, up a fraction and the S&P 500 also gained a fraction to close at 1,257.

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