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Ag News

Wall Street Rides Commodities’ Coat tails into the Green

  Program 4688  (download mp3)
  Posted on Tue, May 10, 2011


US lean hog futures settled mixed on support from broad market rebound in commodities, easing concerns over demand. June lean hogs gained 27 to 92.65, while July ended up 6, at 93.20.
 

US cattle futures ended lower resisting broad rebound in commodities. Analysts say support from outside markets such as oil and wheat isn't enough to combat weakness in beef demand, strength in near-term supplies of slaughter-ready cattle. June Live-cattle drop 85 at $109, May feeder cattle ended down 112, at $128.

US wheat futures soared more than 4% on increasing concerns about global output. Searing temperatures add stress to Kansas' wheat crop after months of drought. July wheat in Chicago climbed 31 to $7.90; July wheat in KC gained 40 1/2 to $9.14; and MGE July wheat rallied 41 to $9.44.
 

US corn futures finished sharply higher in a rebound from last week's 9% fall. Surging prices for crude oil and precious metals and weakness in the dollar supported the recovery as commodity funds re-entered the markets to buy. July corn surged 21 1/4 to $7.07.
 

US soybean futures rose on spillover strength from broad-based commodity markets. Soaring crude oil and precious metal futures served as the catalyst to rekindle speculative buying following last week's sharp declines, soy product futures finish higher, climbing in unison with soybeans. July soybeans gained 9 to $13.35, July soy oil gained 60 to 56.29, and July soy meal ended up 90 at $350.40.

Cotton futures for July delivery settled flat, but like grain markets yesterday, those for crops just going into the ground are perking up, signaling renewed concerns about extremely dry weather in West Texas and flooding in the Mississippi Delta. July cotton finished down 16 at $1.45 while December new crop climbed $1.49 to $1.23

A resurgence of worry about euro-zone sovereign debt pushed gold back above $1,500 and added to silver's recovery after last week's selloff provided what some saw as potential bargains. June gold rose $11.60 to $1,503.20 an ounce, July silver gained $1.829 to $37.11.
 

Oil futures clawed back some of the ground lost last week, pulled higher after heavy flooding and problems at a Mississippi refinery triggered a surge in gasoline prices. June crude gained $5.37 to $102.55 a barrel, June gasoline soared 18.83 cents to t $3.27 a gallon, and June distillates gained 11.61 cents to $2.961 a gallon.
 

Natural gas futures fell Monday for a sixth consecutive session, ending at three-week lows as market participants bet that mild weather in the coming weeks would curb demand for the heating and power-plant fuel. June Natural gas dropped 8.1 cents to $4.15.
 

Energy and materials stocks rallied on the day as the commodities complex rebounded from last week's rout, bringing the broader markets along for the ride. The Dow gained 45 to close at 12,684, the Nasdaq closed at 2,843, up 15 2/3 and the S&P 500 gained 6 to close at 1,346.
 

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