Heating Oil, Gasoline Decline Ahead of September Expiration
May 12, 2011
Gasoline and heating-oil futures prices settled lower Friday on the New York Mercantile Exchange as traders pared their holdings ahead of the September expiration at the close. Crude-oil prices rose slightly. September heating oil fell 0.85 cent to 62.82 cents a gallon, and September gasoline settled at 62.82 cents a gallon, down 0.90 cent, due largely to liquidation of speculative long positions ahead of the expiration, traders said. Any traders who needed secure product in the futures market probably met their needs on Wednesday or Thursday rather than risk having prices rise sharply Friday, a trader said. October crude oil settled at $22.25 a barrel, up 10 cents, after remaining inside a narrow trading range during the session. Little news emerged to influence prices during the day, contributing to the thin conditions. Many market players were also absent Friday ahead of the holiday Labor Day weekend. In other commodity markets: GRAINS AND SOYBEANS: Corn and soybean futures prices ended mixed Friday after a quiet session on the Chicago Board of Trade ahead of the Labor Day holiday. Wheat futures finished lower. Trading was largely influenced by conflicting views about weather conditions during the long holiday weekend. Most Midwestern growing areas are expected to have modest temperatures, but some investors are concerned about a lack of significant moisture in the eastern Corn Belt. Wheat futures retreated after the International Grains Council forecast world wheat production at 563 million tons this year, up from a previous forecast of 560 million tons. Recent reports have indicated that several countries, including Canada, Australia and Brazil, could have wheat production slightly above the Agriculture Department's August estimate. Wheat for December delivery fell 2.75 cents to $4.5325 a bushel; December corn fell 0.75 cent to $3.4375 a bushel; November soybeans lost 0.5 cent to $7.945 a bushel. PRECIOUS METALS: Precious metals lost ground Friday on the Comex division of the New York Mercantile Exchange, in an abbreviated pre-holiday session. December gold fell $1.10 to $391.30 an ounce. December silver lost 0.5 cent to $5.25 an ounce. Bernie Rosas, senior analyst with PaineWebber in New Jersey, said the markets never recovered from early selling related to renewed talk that the International Monetary Fund is considering sales of its gold to help poor nations. The New York markets opened lower because of selling in London on the talk, traders said.
