cotton futures news

cotton futures news

October 18th, 2018
The USDA World Agricultural Supply and Demand Estimates for October contained a couple of surprises. The revisions of the 2018/19 world cotton numbers included a large — and long-awaited — revision to India’s historical balance sheets covering 2002-2013 crops.

For the 2018/19 balance sheet, this was reflected by a 2.9 million-bale month-over-month reduction to Indian carry-in stocks. This cut went straight to the bottom line, reducing Indian and foreign ending stocks. World production was cut 310,000 bales, mainly from a half-million bale reduction in Australia that outweighed smaller increases elsewhere. World consumption was reduced by 180,000 bales, mainly in Turkey.

The bottom line of all these adjustments was a fundamentally bullish 3.01 million bale reduction in world ending stocks, month-over-month.

The October revisions to 2018/19 U.S. cotton involved another surprising, albeit small, increase in U.S. supply. This adjustment was attributed to production increases in Texas and Georgia (pre-Hurricane Michael) that outweighed post-Hurricane Florence reductions in the Carolinas. U.S. 2018/19 exports were reduced by 200,000 bales to reflect lower world trade and consumption.

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sugar futures brokers

sugar futures brokers

August 24th, 2018

Sugar futures prices have fallen to their lowest levels in a decade and are likely to drop further as record world-wide production collides with healthier eating.

Raw sugar futures traded on the ICE Futures U.S. exchange SBV8, -1.90% settled at 10.1 cents a pound on Monday, the lowest finish for a front-month contract since June 10, 2008, according to Dow Jones Market Data. Year to date, prices have lost more than 32%—the biggest percentage decline so far among major commodities.

“The world has gone from supply deficit to supply surplus in the past year and a half,” says Sal Gilbertie, president and chief investment officer at Teucrium Trading. “This year, both India, the world’s second-largest producer of sugar, and Thailand, the world’s fourth-largest sugar producer, are having record production years, which has ballooned the surplus.”

World sugar production is forecast to reach a record level of 187.6 million metric tons in the 2017-18 marketing year, according to the United Nations’ Food and Agriculture Organization, or FAO. That would mark an increase of just over 11% from the previous year.

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s&p futures news

s&p futures news

August 7th, 2018

Wall Street was higher on Tuesday, as the S&P 500 edged closer to the all-time high it reached in January.

The S&P 500 rose 8 points, or 0.29%, to 2,858.70 as of 9:35 AM ET (13:35 GMT). The all time high is 2,872.87.

The Dow increased 103 points, or 0.41%, to 25,605.58 and the tech-heavy Nasdaq Composite gained 34 points, or 0.44%, to 7,894.08.

Stock prices were driven higher by a better-than-expected earnings season, with almost 80% of the S&P 500 since Monday posting profits to the upside, according to FactSet. Meanwhile, the CBOE Volatility Index (VIX), or Wall Street’s fear gauge, fell to its lowest level since early February.

Earnings season continues, with the biggest focus on Walt Disney (NYSE:DIS) and Snap (NYSE:SNAP), which both report after the close. Disney was up 0.78%, while Snap slumped 1.69%.

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wheat futures brokers

wheat futures brokers

August 2nd, 2018

Wheat prices leapt to multiyear highs on Thursday on fears of curtailed exports from the Black Sea after heat and drought damaged crops across Europe.

Milling wheat in Paris settled up 2.7 per cent at €212.75 per tonne, the highest since 2014. In Chicago, soft winter wheat closed 0.4 per cent higher at $5.60½ a bushel after spiking near $6 for the first time since 2015.

Headlines from Ukraine, a leading grain producer, ignited a market already fretful over short supplies this year.

Ukraine planned to sign a memorandum with traders to set limits for grain exports, Bloomberg reported, citing a Agriculture Ministry statement posted on Facebook. The ministry’s press service later said that it was not holding talks about “strict and direct limits for milling wheat exports,” Reuters reported.

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crude oil futures 101

crude oil futures 101

August 2nd, 2018

Oil prices dropped Thursday, extending losses that came in the wake of fresh U.S. government data showing mounting petroleum stockpiles.

Brent crude LCOV8, -0.35%  , the global benchmark, was down 0.6% at $71.94 a barrel on London’s Intercontinental Exchange. On the New York Mercantile Exchange, West Texas Intermediate futures CLU8, -0.40%  were trading down 0.9% at $67.05 a barrel.

The U.S. Energy Information Administration said late Wednesday that U.S. crude oil inventories increased by 3.8 million barrels last week, to stand at 409 million barrels. Traders and analysts surveyed by The Wall Street Journal had predicted an average weekly decline of 2.2 million barrels.

Prices fell to their lowest level in almost six weeks after the data came out Wednesday.

“The build was driven by lower crude oil exports, which fell by 1.37 million barrels a day week-on-week,” according to analysts at ING Bank.

Tamas Varga, an analyst at brokerage PVM Oil Associates, noted that total U.S. commercial oil inventories, including refined products, increased by more than 10 million barrels last week.

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live cattle futures

live cattle futures

April 16th, 2018

While winter lingers in the upper Midwest, ranchers in the U.S. central plains are dealing with relentless drought, forcing some ranchers to send livestock to feedlots earlier. We’ll see this Friday how many more head are at feed yards when USDA releases the monthly Cattle on Feed report.

Cattle futures have been sliding as market watchers expect a landslide of meat in the coming months. Severe drought is parching the U.S. Plains, and ranchers have had no choice but to send their animals to yards where they’re fattened up for market with grains. That speeds up the growing process and means the animals will go to market earlier than usual.

“It’s a shockingly weak market,” said Dennis Smith, a senior account executive at Archer Financial Services Inc. in Chicago. Traders can expect “a bulge in production that’s going to happen in the second and third quarter,” he said.

Extreme and exceptional drought has spread across Texas, Oklahoma, Kansas and Colorado, according to the U.S. Drought Monitor in Lincoln, Nebraska. It’s been that way for around six months, and doesn’t show signs of improving.

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natural gas futures news

natural gas futures news

April 23rd, 2018

Natural gas futures started the week in negative territory on Monday, amid speculation the start of spring will bring warmer temperatures throughout the U.S. and cut into demand for the fuel.

Front-month U.S. natural gas futures slumped 1.9 cents, or around 0.7%, to $2.748 per million British thermal units (btu) by 9:00AM ET (1300GMT).

The commodity notched its second straight weekly gain, with futures rising about 0.2% last week, thanks to lingering winter-like weather conditions, which has delayed the official start of the storage injection season.

Despite recent gains, market experts warned that futures are likely to remain vulnerable in the near-term as below-normal temperatures in April mean less than they do in January and February.

Spring usually sees the weakest demand for natural gas in the U.S, as the absence of extreme temperatures curbs demand for heating and air conditioning.

Meanwhile, market participants looked ahead to this week’s storage data due on Thursday, which is expected to show another draw in a range between 3 and 17 billion cubic feet (bcf) for the week ended April 20.

That compares with a decline of 36 bcf in the preceding week, an increase of 74 bcf a year earlier and a five-year average rise of 60 bcf.

Total natural gas in storage currently stands at 1.299 trillion cubic feet (tcf), according to the U.S. Energy Information Administration.

That figure is 808 bcf, or around 38.3%, lower than levels at this time a year ago, and 449 bcf, or roughly 25.7%, below the five-year average for this time of year.

Record high domestic production levels have overshadowed the fact that stocks in storage are well below their seasonal averages for this time of year.

- Investing.com.

orange juice futures

orange juice futures

November 27th, 2017

“Market will tighten again in 2018-19 and approach record-low stock levels” with “higher prices likely” in long term following hurricane damage to Florida groves and dry conditions in Brazil expected, Andres Padilla, beverage analyst at Rabobank in Sao Paulo, says in report.

* Brazil’s 2018-19 juice output may drop 21% to 950,000 tons y/y
* In Florida, damage from Hurricane Irma “could be long lasting, reaching beyond the immediately increased fruit droppage in 2017-18”
* Juice output may drop to 235,000 tons in 2017-18 and 250,000 in 2018-19, down from 390,000 in 2016-17
* Prices may rise even as demand will continue declining this year and next at ~4% in volume; Europe’s use seen ebbing at slower rate than U.S.
* In 2018-19, global juice supply is set to drop 15% to 1.6m tons y/y; balance may shift to deficit of 80,000 tons from surplus of same amount

- Marvin G. Perez Bloomberg.

 

gold futures blog

gold futures blog

November 21st, 2017

Gold prices held onto gains on Tuesday, as sentiment on the U.S. dollar remained fragile amid ongoing uncertainty over the fate of a U.S. tax bill and ahead of the minutes of the Federal Reserve’s policy meeting due on Wednesday.

Comex gold futures were up $3.47 or about 0.27% at $1,278.78 a troy ounce by 08:15 a.m. ET (12:15 GMT).

The House of Representatives passed a bill last week that would lower corporate taxes and cut individual taxes for most households in 2018.

However the legislation could still face difficulties in the Senate amid resistance within Republican ranks. Senate lawmakers are expected to vote on their version of the bill after this week’s Thanksgiving holiday.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 94.01.

Gold is sensitive to moves in the dollar. A weaker dollar makes gold less expensive for holders of foreign currency.

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crude oil futures news

crude oil futures news

November 20th, 2017

Natural gas futures started the week off with sharp losses on Monday, as traders reacted to forecasts calling for less heating demand through the end of this month.

U.S. natural gas futures sank 6.2 cents, or around 2%, to $3.035 per million British thermal units by 9:00AM ET (1400GMT). It reached its worst level since Nov. 3 at $3.026 earlier in the session.

Prices climbed 4.4 cents, or almost 1.5%, on Friday, but still lost about 3.6% for the week.

Gas futures often reach a seasonal low in late October and early November, when mild weather weakens demand, before recovering in the winter, when heating-fuel use peaks.

The heating season from November through March is the peak demand period for U.S. gas consumption.

Meanwhile, market participants looked ahead to this week’s storage data due on Wednesday, which is expected to show a draw in a range between 43 and 53 billion cubic feet (bcf) in the week ended Nov. 17.

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