Market Recap: Speculators Trash Cotton Futures at the Close
Lean hog futures faced a sharp sell-off after pork prices fall to fresh 14-month low. Investors are waiting for signs that prices have passed their lowest point in spring before a steady seasonal tightening of supplies supports prices through summer. April lean hogs fell 107 to close at $84.95, the May contract lost 77 to close at $93.67.
U.S. live cattle futures added to prior-day losses on Tuesday as pressure from outside markets added to rising concerns about expanding supplies and tepid beef demand. April Live Cattle fell 65 to $124, and April feeder cattle fell 87 to close at $152.
US wheat futures dropped to a 1-week low, influenced by widespread selling in commodities. May wheat in Chicago fell 9 3/4 to $6.42 and May wheat in KC dropped 11 to $6.80.
US corn futures dropped on a combination of broad based fund liquidation across asset classes and fear of declining export demand. May corn ended down 16 at $6.47.
US soy futures stumbled Tuesday, with soybeans sliding to one-week lows in a broad-based risk-off trading day. May soybeans ended down 21 1/2 at $13.45, May soy meal dropped $5.30 to $365.60, and May soy oil fell 1.07 to 54.33.
ICE cotton futures fell sharply at the end of the session. Chris Kramedjian, a risk analyst at INTL FCStone says that "Someone really came in and clobbered it and did a lot of selling right on the close," , he went on to say that the market is waiting for the USDA cotton export sales report, due out on Thursday. May cotton fell 118 to close at 87.90, and the July contract also fell 118 to 88.72.
Gold prices receded Tuesday as the dollar strengthened and traders continued to weigh the impact of slower Chinese economic growth and potential declines in demand from top gold consumer India. April gold fell $20.30 to $1,647.00 an ounce, and May silver closed at $31.80, down $1.12.
Oil futures fell Tuesday as Saudi Arabian officials suggested the world's largest crude exporter will try to rein in rising prices. April crude fell $2.48 to $105.61 a barrel, April gasoline fell a fraction to $3.363 a gallon, and April distillates fell 2.46 cents to $3.23 a gallon.
Natural-gas futures settled weaker Tuesday as mild weather across the nation continues to sap residential heating demand. April nat gas fell 1.6 cents to $2.33.
On Wall Street, growing anxiety about China's growth prospects hit Wall Street on Tuesday, knocking the major market averages off of multi-year highs.