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Market Recap: Crude Oil Plunges with Release from Strategic Reserve

  Program 5209  (download mp3)
  Posted on Fri, Jun 24, 2011


U.S. livestock futures ended mixed, as live cattle shook off widespread selling in other commodities and ended higher on worries about future supplies and strong packer margins, lean hogs fell on pressure from the broad selloff in commodities. August live cattle fell 142 to 95.90, August lean hogs closed up 102 at $112.

US wheat futures finished mixed, as the July contract rebounded from sharp, early losses. July wheat in Chicago rose 10 3/4 to $6.49, September wheat in KC lost 10 1/2 to $7.78; and MGE September wheat shed 16 to $8.35.
 

US corn futures rebounded from heavy selling, with nearby July contract ending higher after touching a three-month low. July corn rose 3 to $6.80.
 

US soybean futures fell to their lowest level in five weeks, sliding on broader-based selling amid strong gains in the US dollar, Soy product futures fell in unison with soybeans. Nov soybeans ended down 12 1/2 at $13.17, Dec soy oil dropped 112 to 56.38, and July soy meal ended down 650 at $340.60

ICE cotton futures settled lower under pressure from a stronger US dollar and plunging oil prices. December cotton closed at $1.19, down 205, and the July contract gained 333 to close at $1.64.

Gold tumbled after a surprise release of strategic crude oil reserves intensified investor expectations of lower inflation amid slower economic growth. August Gold ended down $32.90 at $1,520.50 an, July silver closed at $35.00, down $1.73.
 

Oil futures plunged Thursday after the International Energy Agency announced its members would release 60 million barrels from strategic reserves in an effort to ease prices. August crude plunged $4.39 to $91.02 a barrel, July gasoline fell 13.57 cents to $2.83 a gallon, and July distillates dropped 17.32 cents to $2.78 a gallon.
 

Natural gas futures plunged Thursday to their lowest prices in a month as the government reported that U.S. stockpiles increased much more than expected. July Natural gas dropped 12.4 cents to $4.19.
 

The markets, which were down sharply much of the day, staged a comeback amid reports Greek officials agreed to a five-year austerity plan. The Dow fell 59 to close at 12,050, the Nasdaq closed at 2,686, up 17 ½ and the S&P 500 dropped 3 2/3 to close at 1,283.
 

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