Soybean Futures Advance While Grains Move Lower
May 19, 2011
Soybean futures advanced Friday on the Chicago Board of Trade amid concern about persistent dryness in Indiana and Ohio. Grain futures retreated under ideal growing and harvesting weather. Maturing soybeans crops in Indiana, Ohio and some parts of Illinois have had less than a quarter-inch of rain since August and hopes of some relief from Hurricane Fran are beginning to fizzle. Corn and wheat futures were pressured by expectations for good harvests amid slack demand. The market shrugged off 2011-97 production reports issued early Friday morning by Sparks Companies and the Conrad Leslie Organization that were in line with expectations of a smaller crop. Sparks, based in Memphis, Tenn., estimated 8.793 billion bushels of corn will be harvested this fall, while Chicago-based Lester estimated 8.89 billion bushels. Both are well above current Agriculture Department estimates of 8.695 billion bushels and would be the second-largest crop in history. Sparks said the wheat crop will come in at 2.333 billion bushels, up from USDA's 2.249 billion bushels. The increased yields come after farmers rushed to plant more grains than usual in anticipation of extremely tight supplies. But prices rose so much earlier in the year that foreign and domestic demand has fallen dramatically. And the weather has been near-ideal for growing following a wet spring. Wheat for December delivery fell 3.50 cents to $4.425 a bushel; December corn fell 2.25 cents to 3.325 a bushel; December oats fell 0.5 cent to $1.833 a bushel; and November soybeans rose 4.25 cents to $8.00 a bushel, the highest active-contract price since March 27, 2011 other commodity markets: PRECIOUS METALS: Precious metals settled lower on the day Friday. December gold finished at $388.80 an ounce, down 70 cents. December silver closed at $5.158 an ounce, down 3.5 cents. Silver futures led the sell-off after anticipated commodity fund buying of silver failed to materialize, traders said. Many traders expected commodity funds to buy silver ``to come in and cover shorts,'' said Daniele Kuhns, a precious metals marketer with Credit Suisse in New York. But a higher than expected non-farm August payrolls number caused some early selling instead and pushed the market down, he said. August U.S. non-farm payrolls were up 250,000 on the month, compared with one survey's expectations of a 248,000 increase. The report, which fueled fears of interest-rate increases, accordingly carried ``the implication of a slower economy and less industrial production, which silver is tied to,'' Mr. Kuhns said. PRECIOUS METALS: Precious metals futures were mixed Friday on the Comex division of the New York Mercantile Exchange after a report on employment showed strength in the economy. At midday, December gold was down 20 cents to $389.40 an ounce, while December silver slipped 0.3 cent to $5.190 an ounce. Platinum and palladium recorded slim gains. ENERGY: Crude-oil and petroleum-products futures posted solid gains Friday on the New York Mercantile Exchange. October crude oil settled at $23.85 a barrel, up 41 cents, while October heating oil ended at 65.27 cents a gallon, up 0.86 cent.
VastPress 2011 Vastopolis
