News from The ROBERT|CHARLESGroup for investing in the futures and futures options markets. Futures trading is risky. Our goal is to take the risk out of a high risk business. Keep your comments clean and respect others' opinions. Profanity and insults are not acceptable. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. IN CONSIDERING WHETHER TO TRADE OR TO AUTHORIZE SOMEONE ELSE TO TRADE FOR YOU, YOU SHOULD READ AND BE AWARE OF THE RISKS, DISCLOSURES, AND OTHER INFORMATION SET FORTH BELOW. *
Buoyed by the strong results at a European Union summit and renewed anxiety on Iran, crude oil futures shot up more than 9% on Friday, outperforming other leading commodities and overlooking the latest bearish news of weak consumer sentiment. Nymex crude oil futures settled at $84.96 per barrel, a rise of a $7.27, or about 9.4%, the biggest one-day oil rise in terms of percentages since March 2009. European leaders attending a two-day summit agreed early Friday on a plan to use bailout funds to directly aid banks in Spain and Italy. The news proved ...
U.S. cocoa futures jumped to close at the highest level in seven weeks in heavy dealings on Friday, while arabica coffee ended at a nearly six-week high and raw sugar finished firm, with broad-based buying lifting the commodity complex. Markets moved higher on spillover strength from the rallying commodity complex, euro and world stocks after European leaders agreed on a deal to shore up euro zone banks.
U.S. Treasuries prices fell on Friday as a deal to let euro zone rescue funds be used to stabilize debt markets and bolster banks damped demand for safe-haven U.S. government bonds. Instead, investors turned to riskier assets. In contrast, benchmark 10-year Treasury notes fell 21/32, their yields rising to 1.65 percent from 1.55 percent on Thursday. Thirty-year bonds fell 22/32, their yields rising to 2.75 percent from 2.67 percent. Surprising markets, euro zone leaders agreed on Friday to let their rescue fund inject aid directly into stricken banks from next year and intervene in bond markets to support troubled member states. They also pledged to create a single banking supervisor for euro zone banks based around the European Central Bank in a landmark first step towards a European banking union that could help shore up struggling member Spain.
U.S. stocks are closing with their second-biggest gain this year after European leaders announced a plan to rescue banks, relieve debt-burdened governments and restore investor confidence. Stocks and commodities rallied across the globe Friday after leaders in Brussels announced the crisis-fighting measures. The Dow Jones industrial average closed up 278 points at 12,880 on the last trading day of the second quarter. The S&P 500 closed up 33 at 1,362. The Nasdaq finished up 86 at 2,935.
Copper surged over 4 percent on Friday, its biggest one-day gain since November, as the latest euro-zone rescue deal boosted a broad range of commodity and financial markets with investors scrambling to cover short positions. Even after the day's sharp gains, copper still ended the second quarter down around 8 percent in New York and 9 percent in London, its sharpest quarterly decline since the middle of last year. Leaders of the 17-nation euro zone agreed rescue funds could be used for sovereign debt purchases without forcing countries to adopt extra austerity measures. Countries will also be able to recapitalize banks directly without increasing their budget deficit.
Commodities jumped the most in 39 months on optimism that Europe’s debt crisis may be contained after leaders agreed to ease repayment rules for emergency loans to Spanish banks and relax conditions on help for Italy. The Standard & Poor’s GSCI Spot Index (MXWD) of 24 raw materials rose 4.6 percent to 593.75 at 1:17 p.m., the biggest intraday gain since April 2, 2009. The increase in the index trimmed its quarterly loss to 14 percent, still the worst since the final three months of 2008. Crude oil jumped as much as 8 percent, reducing its quarterly loss to 19 percent. After 12 hours of talks that ended at 4:30 a.m. in Brussels today, leaders of the 17 euro countries dropped the requirement that governments get preferred creditor status on crisis loans to Spain’s blighted banks, European Union President Herman Van Rompuy said. Banks can also be recapitalized directly with funds rather than going through governments, he said.
Societe Generale SA (GLE) raised its price forecasts for U.S. corn and wheat as dry weather may damage crops. Corn may average $7 a bushel in the third quarter, up from an estimate of $6.20 a bushel, Christopher Narayanan, the bank’s head of agricultural commodity research, said today in a report. The grain may average $6.46 in the fourth quarter, compared with an estimate of $5.72. Corn for December delivery was at $6.335 a bushel by 11:30 a.m. today on the Chicago Board of Trade. U.S. corn yields may drop to 155.4 bushels an acre, lower than the Department of Agriculture’s estimate for a record 166 bushels per acre, because crop conditions have “progressively worsened” in the second half of June, Narayanan said.
Oil rebounded from the lowest close in almost nine months in New York on speculation that European measures aimed at fighting the region’s debt crisis will spur demand for fuel. Crude posted its steepest intraday gain in eight months, increasing as much as 4.5 percent and trimming the biggest quarterly decline since the final three months of 2008. Oil gained after euro-area leaders agreed to relax conditions on emergency loans for Spanish banks and possible help for Italy. Prices may advance after the European Union’s ban on the purchase, transport, financing and insurance of Iranian crude starts on July 1, a Bloomberg survey showed. Norway’s first industrywide energy strike since 2004 is in its sixth day.
Gold is set for the worst quarter in eight years as concern that Europe’s debt crisis will persist boosted the dollar. Silver and platinum headed for their worst quarters since the collapse of Lehman Brothers Holdings Inc. Spot gold rose as much as 0.3 percent to $1,556.55 an ounce and was at $1,556.10 at 10:34 a.m. in Singapore. Bullion fell 6.7 percent since the end of March, the worst quarter since the period to June 2004, as the dollar rallied 4.7 percent against a six-currency basket. The metal is also set for its weakest half- year showing since the six months to December 2008, after the U.S. Federal Reserve didn’t buy more debt and instead extended a program of replacing short-term bonds with longer-term debt.
Crude-oil futures soared more than 6% Friday as investors cheered European leaders’ plan to address the region’s distressed banking sector. Other energy futures went along for the ride, with heating oil leading the way on a percentage basis among petroleum products and natural gas. Crude for August delivery CLQ2+7.98% climbed $5.03, or 6.5%, to $82.71 a barrel on the New York Mercantile Exchange, putting the contract on pace for weekly gains of around 3%. Quarterly losses, however, hover in the 20% range. Investors got way more than they hoped for in the aftermath of the summit. “The European Union reached an unexpectedly positive agreement ... however, the statement is not a panacea,” said Jason Schenker, president of Prestige Economics in Austin. “It’s a step in the right direction, but there’s still a long road. Compared to expectations — which were that the summit would get bogged down and yield little or nothing constructive — the progress arising from the EU’s Brussels summit propelled oil forward after an eight-month low in Thursday’s session.
Larger U.S. corn sowings menaced by drought, USDA says | Reuters
U.S. farmers planted slightly more corn and far more soybeans than they originally planned, the government said on Friday in a report that failed to ease concerns over a Midwest drought that has jeopardized a bumper harvest. According to the Agriculture Department's annual planting report, it has been 75 years since growers seeded so many acres with corn. They also planted the third-largest amount of soybeans on record. The plantings were slightly larger than analysts had expected, but new-crop Chicago corn prices extended gains toward its biggest weekly rally since 2008. "Weather trumps the report," said Don Roose, analyst with U.S. Commodities in West Des Moines, Iowa. "We traded the report for probably 30 seconds and then we went back to trading the weather.
Raw sugar futures on ICE rose with the nearby premium SB-1=R edging up to 0.80 cent ahead of expiry of the July contract on Friday. Dealers said delays to shipments from Brazil had helped to tighten nearby supplies. July raw sugar futures on ICE rose 0.29 cent or 1.4 percent to 21.50 cents per lb at 0925 GMT, just below Thursday's seven-week high of 21.96 cents a lb, while October rose 0.21 cent or 1 percent to 20.74 cents. London August white sugar was up $4.40, or 0.7 percent, at $603.60 a tonne...
The information and data contained on this blog was obtained from sources considered reliable. Their accuracy or completeness is not guaranteed. Information provided on this website is not to be deemed as an offer or solicitation with respect to the sale or purchase of any securities or commodities. Any decision to purchase or sell as a result of the opinions expressed on will be the full responsibility of the person authorizing such transaction.