A general correction in commodities prices spurred by the plunge in oil prices pressured the steel sector as well, with ArcelorMittal (NYSE:MT), US Steel (NYSE:X), Gerdau S.A. (NYSE:GGB) and Mechel OAO (NYSE:MTL) all closing down Tuesday.
Crude oil prices for May delivery fell as much as 63 cents, or 0.6 percent, to $105.62 a barrel in electronic trading on the New York Mercantile Exchange. The contract was at $106.01 at 10:14 a.m. Sydney time. Yesterday, it fell $3.67 to $106.25. Prices dropped 5.9 percent on April 11 and 12.
The U.S. raised its crude-oil price projection for 2011 to an average $106.38 a barrel from $101.77 in March, according to the Energy Department’s Short-Term Energy Outlook.
Mechel OAO closed Tuesday at $28.58, falling $0.83, or 2.82 percent. Gerdau S.A. closed at $12.36, down $0.41, or 3.21 percent. ArcelorMittal closed at $35.80, dropping $0.72, or 1.97 percent. U.S. Steel ended the session at $50.52, declining $1.20, or 2.32 percent.
Showing posts with label Commodity Prices. Show all posts
Showing posts with label Commodity Prices. Show all posts
Wednesday, April 13, 2011
Thursday, March 24, 2011
BHP (BHP), RIO (RIO) Jump on Rising Commodity Prices
Rising gold, silver and copper prices are pushing up the share price of diversified miners BHP Billiton (NYSE:BHP) and Rio Tinto (NYSE:RIO), as safe haven status and growing copper demand offers the commodities support and growth.
Copper demand and prices are rising on the fact that Japan will need a tremendous amount to rebuild the country. Other commodities like aluminum and steel will also generate strong demand over time.
Gold is up on the various geo-political and economic crises around the world, with the never-ending sovereign debt crisis in the EU again adding fuel to the fire.
Silver continues to rise on an alternative to gold as well as demand as an industrial metal.
BHP was trading at $ 90.94, gaining $0.92, or 1.02 percent, as of 2:20 PM EDT. Rio Tinto was at $68.57, up $1.05, or 1.56 percent.
Copper demand and prices are rising on the fact that Japan will need a tremendous amount to rebuild the country. Other commodities like aluminum and steel will also generate strong demand over time.
Gold is up on the various geo-political and economic crises around the world, with the never-ending sovereign debt crisis in the EU again adding fuel to the fire.
Silver continues to rise on an alternative to gold as well as demand as an industrial metal.
BHP was trading at $ 90.94, gaining $0.92, or 1.02 percent, as of 2:20 PM EDT. Rio Tinto was at $68.57, up $1.05, or 1.56 percent.
Friday, March 4, 2011
Iowa Corn Production Drops in 2010
Corn production in Iowa for 2010 was down from 2009 levels, coming in at 2.2 billion bushels, falling 267,000 bushels.
Final 2010 crop numbers released Tuesday by the U.S. Department of Agriculture show more soybeans were produced statewide and less corn compared to the previous year.
Local commodity prices responded in the exact opposite way some people might think.
Typically, commodity supplies affect prices. In this case, cash corn at East Central Iowa Cooperative based in Hudson dipped since Tuesday's report and soybeans have gone up.
Corn at Monday's close was $6.96 a bushel, compared to $6.87 Thursday afternoon in Hudson. Soybeans steadily climbed about 10 to 15 cents a bushel each day since Monday, from $13.01 a bushel to $14.41 Thursday afternoon.
When it comes to grain, a local commodity expert said supply is only a part of pricing.
"It's a small piece of the puzzle," said Brad Stewart, ECIC grain merchandiser. "We used to look at supply and demand to see what prices should be. Now, (buyers) look at next year to see what other countries will need for protein."
Iowa farmers produced 496.2 million bushels of soybeans last year, 10 million more than 2009. The average yield remained the same at 51 bushels per acre. Harvested acres increased by 200,000 in 2010 to 9.73 million.
Full Story
Final 2010 crop numbers released Tuesday by the U.S. Department of Agriculture show more soybeans were produced statewide and less corn compared to the previous year.
Local commodity prices responded in the exact opposite way some people might think.
Typically, commodity supplies affect prices. In this case, cash corn at East Central Iowa Cooperative based in Hudson dipped since Tuesday's report and soybeans have gone up.
Corn at Monday's close was $6.96 a bushel, compared to $6.87 Thursday afternoon in Hudson. Soybeans steadily climbed about 10 to 15 cents a bushel each day since Monday, from $13.01 a bushel to $14.41 Thursday afternoon.
When it comes to grain, a local commodity expert said supply is only a part of pricing.
"It's a small piece of the puzzle," said Brad Stewart, ECIC grain merchandiser. "We used to look at supply and demand to see what prices should be. Now, (buyers) look at next year to see what other countries will need for protein."
Iowa farmers produced 496.2 million bushels of soybeans last year, 10 million more than 2009. The average yield remained the same at 51 bushels per acre. Harvested acres increased by 200,000 in 2010 to 9.73 million.
Full Story
Monday, December 13, 2010
Goldman (NYSE:GS) Says Precious Metals Will Lead Commodities in 2011
Talking commodities today concerning 2011, Goldman Sachs (NYSE:GS) said they see precious metals leading the way, with gold reaching $1,690 in 12 months, while livestock performing the worst in the commodity sector.
Over the next year, Goldman sees precious metals rising 28 percent and livestock increasing by only 4 percent.
Goldman said in the report, “Extreme weakness in U.S. demand over the past two years has allowed China to grow unconstrained without any competition for raw materials. This is likely to change in 2011 with a stronger U.S. that is likely to bump up against a China that is consuming dramatically more commodities than pre-crisis.”
In order to cut back on American consumption, commodity prices will probably be pushed up in order to “to make room for further Chinese demand,” according to Goldman.
Precious metals specifically identified as being most affected were platinum and copper, and other commodities to be affected said Goldman, will be soybeans, cotton and crude oil.
As far as gold demand and prices, Goldman concluded, “A low U.S. real interest-rate environment will continue in 2011, particularly given the resumption of quantitative easing measures in the U.S.,” the analysts wrote. “However, as we look toward 2012, we find it timely to reiterate our view that at current price levels gold remains a compelling trade, but not a long-term investment.”
Over the next year, Goldman sees precious metals rising 28 percent and livestock increasing by only 4 percent.
Goldman said in the report, “Extreme weakness in U.S. demand over the past two years has allowed China to grow unconstrained without any competition for raw materials. This is likely to change in 2011 with a stronger U.S. that is likely to bump up against a China that is consuming dramatically more commodities than pre-crisis.”
In order to cut back on American consumption, commodity prices will probably be pushed up in order to “to make room for further Chinese demand,” according to Goldman.
Precious metals specifically identified as being most affected were platinum and copper, and other commodities to be affected said Goldman, will be soybeans, cotton and crude oil.
As far as gold demand and prices, Goldman concluded, “A low U.S. real interest-rate environment will continue in 2011, particularly given the resumption of quantitative easing measures in the U.S.,” the analysts wrote. “However, as we look toward 2012, we find it timely to reiterate our view that at current price levels gold remains a compelling trade, but not a long-term investment.”
Thursday, November 18, 2010
Teck Resources (NYSE:TCK) Outperforms Diversified Mining Peers
While their major competitors were all dropping in share price on Wednesday, Teck Resources (NYSE:TCK) was able to carve out a good day as their share price rose, and the company said they're going to raise their dividend by an additional 50 percent.
Raising dividends usually gives a company a boost as it signals they're confident in their ability to generate earnings for shareholders in the period ahead.
It also implies they believe commodity prices will continue to rise in the future.
Tech has had to hold back their dividend because of their acquisition of Fording in the middle of 2008, when they took on $9.8 billion in short-term debt to finance the deal. Tech paid that off earlier in 2010.
Chief Executive Officer Don Lindsay said, "This dividend increase reflects our confidence in our current balance sheet strength and our ability to fund our strong portfolio of growth assets."
Raising dividends usually gives a company a boost as it signals they're confident in their ability to generate earnings for shareholders in the period ahead.
It also implies they believe commodity prices will continue to rise in the future.
Tech has had to hold back their dividend because of their acquisition of Fording in the middle of 2008, when they took on $9.8 billion in short-term debt to finance the deal. Tech paid that off earlier in 2010.
Chief Executive Officer Don Lindsay said, "This dividend increase reflects our confidence in our current balance sheet strength and our ability to fund our strong portfolio of growth assets."
Wednesday, November 17, 2010
JPMorgan (NYSE:JPM) on Possible China Interest Rate Increase
JPMorgan (NYSE:JPM) said recently if China does in fact increase their interest rate it would cause an immediate drop in oil prices.
But the financial giant said it should be considered a buying opportunity for the long term, although in the short term the drop in price could be dramatic.
This is something anyone investing in commodities in general should keep in mind as well.
Many raw materials and metals will probably experience significant downward pressure almost right away, but once the smoke clears, China is still going to acquire many commodities to fuel its growth, even if they attempt to slow it down some.
For most commodities, including gold, it should be considered a buying opportunity if and when it happens.
JPMorgan said, “We continue to emphasize that any price drop in crude, similar to Friday’s, is an opportunity to buy.” Extend that to most commodities and many investors should find good entry or re-entry points.
But the financial giant said it should be considered a buying opportunity for the long term, although in the short term the drop in price could be dramatic.
This is something anyone investing in commodities in general should keep in mind as well.
Many raw materials and metals will probably experience significant downward pressure almost right away, but once the smoke clears, China is still going to acquire many commodities to fuel its growth, even if they attempt to slow it down some.
For most commodities, including gold, it should be considered a buying opportunity if and when it happens.
JPMorgan said, “We continue to emphasize that any price drop in crude, similar to Friday’s, is an opportunity to buy.” Extend that to most commodities and many investors should find good entry or re-entry points.
Bank of America (NYSE:BAC) Says Unwinding of Reflation Trade Could Accelerate
After the announcement by Ben Bernanke concerning implementing another round of quantitative easing, investors have had a nice bump up in profits as expectations that inflation would rise began to be fulfilled. Bank of America (NYSE:BAC) says that could be temporarily halted going forward.
“Reflation trades have gone a long way since Jackson Hole, and positioning alone makes them vulnerable. We estimate that the aggregate position of QE2/reflation trades now sits at a three-year high. The unwinding of the reflation trades that started with the sell-off in Treasuries is now spilling into the cyclically sensitive assets, may have more room to go,” said Bank of America.
“The size of these positions no doubt reflects the strong consensus that easy U.S. monetary policy and emerging market decoupling will keep U.S. interest rates low and global growth strong,” the bank wrote in the note. “However, vulnerability is beginning to show, and further position unwinding seems increasingly probable as we had into year-end.”
Assets which benefit from inflating the economy through printing money, including commodities in general, and gold, have fallen back since November 3.
There are other factors involved, of course, like the EU sovereign debt crisis and uncertainty as to China and how they'll battle inflation.
“Reflation trades have gone a long way since Jackson Hole, and positioning alone makes them vulnerable. We estimate that the aggregate position of QE2/reflation trades now sits at a three-year high. The unwinding of the reflation trades that started with the sell-off in Treasuries is now spilling into the cyclically sensitive assets, may have more room to go,” said Bank of America.
“The size of these positions no doubt reflects the strong consensus that easy U.S. monetary policy and emerging market decoupling will keep U.S. interest rates low and global growth strong,” the bank wrote in the note. “However, vulnerability is beginning to show, and further position unwinding seems increasingly probable as we had into year-end.”
Assets which benefit from inflating the economy through printing money, including commodities in general, and gold, have fallen back since November 3.
There are other factors involved, of course, like the EU sovereign debt crisis and uncertainty as to China and how they'll battle inflation.
Friday, November 5, 2010
Schlumberger (NYSE:SLB), Brigham Exploration (Nasdaq:BEXP), Oasis Petroleum (NYSE:OAS) Soar on Rising Oil Prices
Schlumberger (NYSE:SLB), Brigham Exploration (Nasdaq:BEXP), Oasis Petroleum (NYSE:OAS) all closed higher Thursday, moving up with the broader commodity sector on news of the quantitative easing about to be implemented by the Federal Reserve which will add about $600 billion to the money supply over the next several months, increasing inflationary pressures.
Commodity prices, including oil prices, responded as expected, moving up across the board, with gold growing to record levels again, closing in on $1,400 and ounce, while silver rose to over $26 an ounce. Aluminum increased to levels not seen since April.
Light, sweet crude for December delivery settled the trading session increasing $1.80a barrel on the New York Mercantile Exchange at $86.49.
Schlumberger closed at $75.80 Thursday, rising $3.59, or 4.97 percent. Brigham Exploration surged to close at $22.96, gaining $0.96, or 4.36 percent. Oasis Petroleum was up to $23.44 at the end of the trading session, gaining $1.31, or 5.92 percent.
Commodity prices, including oil prices, responded as expected, moving up across the board, with gold growing to record levels again, closing in on $1,400 and ounce, while silver rose to over $26 an ounce. Aluminum increased to levels not seen since April.
Light, sweet crude for December delivery settled the trading session increasing $1.80a barrel on the New York Mercantile Exchange at $86.49.
Schlumberger closed at $75.80 Thursday, rising $3.59, or 4.97 percent. Brigham Exploration surged to close at $22.96, gaining $0.96, or 4.36 percent. Oasis Petroleum was up to $23.44 at the end of the trading session, gaining $1.31, or 5.92 percent.
TransAtlantic Petroleum (NYSE:TAT), Vaalco (NYSE:EGY), Northern Oil and Gas (Amex:NOG) Soar on Rising Oil Prices
TransAtlantic Petroleum (NYSE:TAT), Vaalco Energy (NYSE:EGY), Northern Oil and Gas (Amex:NOG) all closed over 4 percent higher Thursday, moving up with the broader commodity sector on news of the quantitative easing about to be implemented by the Federal Reserve which will add about $600 billion to the money supply over the next several months, increasing inflationary pressures.
Commodity prices, including oil prices, responded as expected, increasing across the board, with gold rising to record levels again, and silver surpassing $26 an ounce. Aluminum rose to levels not seen since April.
Light, sweet crude for December delivery settled the trading session increasing $1.80 a barrel on the New York Mercantile Exchange at $86.49.
TransAtlantic Petroleum closed at $3.22 Thursday, rising $0.14, or 4.55 percent. Vaalco Energy surged to close at $6.45, gaining $0.25, or 4.03 percent. Northern Oil and Gas was up to $20.21 at the end of the trading session, gaining $0.84, or 4.34 percent.
Commodity prices, including oil prices, responded as expected, increasing across the board, with gold rising to record levels again, and silver surpassing $26 an ounce. Aluminum rose to levels not seen since April.
Light, sweet crude for December delivery settled the trading session increasing $1.80 a barrel on the New York Mercantile Exchange at $86.49.
TransAtlantic Petroleum closed at $3.22 Thursday, rising $0.14, or 4.55 percent. Vaalco Energy surged to close at $6.45, gaining $0.25, or 4.03 percent. Northern Oil and Gas was up to $20.21 at the end of the trading session, gaining $0.84, or 4.34 percent.
Encana (NYSE:ECA), Petrohawk (NYSE:HK), Valero Energy (NYSE:VLO) Soar on Rising Oil Prices
Encana (NYSE:ECA), Petrohawk (NYSE:HK), Valero Energy (NYSE:VLO) all moved up Thursday on the inflationary measures announced by the Federal Reserve through QE2, which pushed the broader commodity market up, along with commodity companies within each sector, including the oil and gas producers.
Commodity prices increased in general, including silver, which rose to over $26 an ounce. Gold prices surged to all-time record highs as well, moving toward the $1,400 an ounce mark. Aluminum soared to its highest levels since April.
Light, sweet crude for December delivery settled the trading session increasing $1.80 a barrel on the New York Mercantile Exchange at $86.49.
Encana Corp. closed at $29.31 Thursday, rising $0.97, or 3.42 percent. Petrohawk surged to close at $16.84, gaining $0.35, or 2.12 percent. Valero Energy was up to $18.93 at the end of the trading day, rising by $0.79, or 4.36 percent.
Commodity prices increased in general, including silver, which rose to over $26 an ounce. Gold prices surged to all-time record highs as well, moving toward the $1,400 an ounce mark. Aluminum soared to its highest levels since April.
Light, sweet crude for December delivery settled the trading session increasing $1.80 a barrel on the New York Mercantile Exchange at $86.49.
Encana Corp. closed at $29.31 Thursday, rising $0.97, or 3.42 percent. Petrohawk surged to close at $16.84, gaining $0.35, or 2.12 percent. Valero Energy was up to $18.93 at the end of the trading day, rising by $0.79, or 4.36 percent.
Hess (NYSE:HES), Petrobras (NYSE:PBR), PetroChina (NYSE:PTR) Surge on Rising Oil Prices
Hess Corporation (NYSE:HES), Petrobras (NYSE:PBR), PetroChina (NYSE:PTR) were all moving up Thursday on the inflationary measures put in place by the Federal Reserve through QE2, which pushed the broader commodity market up, along with raw materials companies within each sector, including the oil producers.
Commodity prices overall rose, including silver, which increased to over $26 an ounce. Gold prices rose to all-time record highs again, closing in on the $1,400 an ounce mark. Aluminum surged to its highest levels since April.
Light, sweet crude for December delivery settled the trading day up $1.80 a barrel on the New York Mercantile Exchange at $86.49.
Hess Corporation closed at $69.25 Thursday, rising $2.81, or 4.23 percent. Petrobras surged to close at $20.42, gaining $0.96, or 4.93 percent. PetroChina was up to $131.06 at the end of the trading day, rising by $2.25, or 1.75 percent.
Commodity prices overall rose, including silver, which increased to over $26 an ounce. Gold prices rose to all-time record highs again, closing in on the $1,400 an ounce mark. Aluminum surged to its highest levels since April.
Light, sweet crude for December delivery settled the trading day up $1.80 a barrel on the New York Mercantile Exchange at $86.49.
Hess Corporation closed at $69.25 Thursday, rising $2.81, or 4.23 percent. Petrobras surged to close at $20.42, gaining $0.96, or 4.93 percent. PetroChina was up to $131.06 at the end of the trading day, rising by $2.25, or 1.75 percent.
Exxon Mobil (NYSE:XOM), Transocean (NYSE:RIG), Shell (NYSE:RDS-a) Up on Rising Oil Prices
Exxon Mobil (NYSE:XOM), Transocean (NYSE:RIG), Shell (NYSE:RDS-a) were all in positive territory Thursday on the inflationary measures announced by the Federal Reserve through QE2, which drove the overall commodity market up, along with companies within each sector, including the oil producers.
Commodity prices overall rose, including silver, which increased to over $26 an ounce. Gold prices surged to all-time record highs again, nearing the $1,400 an ounce mark. Aluminum increased to its highest levels since April, and silver went over $26 an ounce.
Light, sweet crude for December delivery settled the trading day up $1.80 a barrel on the New York Mercantile Exchange at $86.49.
Exxon Mobil closed at $69.38 Thursday, rising $1.41, or 2.07 percent. Transocean surged to close at $64.21, gaining $0.25, or 0.39 percent. Shell was up $68.29 at the end of the trading day, increasing by $1.10, or 1.64 percent.
Commodity prices overall rose, including silver, which increased to over $26 an ounce. Gold prices surged to all-time record highs again, nearing the $1,400 an ounce mark. Aluminum increased to its highest levels since April, and silver went over $26 an ounce.
Light, sweet crude for December delivery settled the trading day up $1.80 a barrel on the New York Mercantile Exchange at $86.49.
Exxon Mobil closed at $69.38 Thursday, rising $1.41, or 2.07 percent. Transocean surged to close at $64.21, gaining $0.25, or 0.39 percent. Shell was up $68.29 at the end of the trading day, increasing by $1.10, or 1.64 percent.
Berry Petroleum (NYSE:BRY), Callon Petroleum (NYSE:CPE), Carrizo Oil & Gas (Nasdaq:CRZO) Surge on Rising Oil Prices
Berry Petroleum (NYSE:BRY), Callon Petroleum (NYSE:CPE), Carrizo Oil & Gas (Nasdaq:CRZO) all rose higher Thursday, moving up with the broader commodity sector on news of the quantitative easing about to be implemented by the Federal Reserve, which will add about $600 billion to the money supply over the next several months, putting inflationary pressure on the economy.
Commodity prices, including oil prices, responded as expected, moving up across the board, with gold growing to record levels again, closing in on $1,400 an ounce, while silver rose to over $26 an ounce. Aluminum increased to price levels not seen since April.
Light, sweet crude for December delivery settled the trading session increasing $1.80a barrel on the New York Mercantile Exchange at $86.49.
Berry Petroleum closed at $37.83 Thursday, rising $1.25, or 3.42 percent. Callon Petroleum surged to close at $5.13, gaining $0.16, or 3.22 percent. Carrizo Oil & Gas was up to $24.64 at the end of the trading session, gaining $0.73, or 3.05 percent.
Commodity prices, including oil prices, responded as expected, moving up across the board, with gold growing to record levels again, closing in on $1,400 an ounce, while silver rose to over $26 an ounce. Aluminum increased to price levels not seen since April.
Light, sweet crude for December delivery settled the trading session increasing $1.80a barrel on the New York Mercantile Exchange at $86.49.
Berry Petroleum closed at $37.83 Thursday, rising $1.25, or 3.42 percent. Callon Petroleum surged to close at $5.13, gaining $0.16, or 3.22 percent. Carrizo Oil & Gas was up to $24.64 at the end of the trading session, gaining $0.73, or 3.05 percent.
Friday, October 8, 2010
Barrick (NYSE:ABX), Ivanhoe (NYSE:IVN), Eldorado (NYSE:EGO), Agnico (NYSE:AEM) Rise with Surging Gold Prices
The jobs report in the U.S. showing further terrible results have gold prices today jumping and gold miners rising with them. Barrick Gold (NYSE:ABX), Ivanhoe Mines (NYSE:IVN), Eldorado Gold and (NYSE:EGO) and Agnico-Eagle Mines (NYSE:AEM) are all in positive territory in anticipation of the inevitable inflationary move by the Federal Reserve, which will pump more money into the American economy.
Ivanhoe Mines made the highest move of the gold miners mentioned above, rising to $24.59, gaining $0.86, or 3.62 percent, as of 2:40 PM EDT. Following them was Agnico, which pushed to $72.78, a gain of $1.38, or 1.93 percent. Barrick also increased, standing at $48.40, adding $0.72, or 1.51 percent. Eldorado finished the grouping off, rising to $18.57, an increase of $0.21, or 1.14 percent.
A number of diversified miners also benefited from the fall in jobs, anticipating higher metals' prices because of the falling value of the U.S. dollar, which will worsen from the Federal Reserve's inflating of the money supply.
Commodity prices in general will continue to increase in price because of the falling value of the U.S. dollar and inflation from the Federal Reserve's actions.
Ivanhoe Mines made the highest move of the gold miners mentioned above, rising to $24.59, gaining $0.86, or 3.62 percent, as of 2:40 PM EDT. Following them was Agnico, which pushed to $72.78, a gain of $1.38, or 1.93 percent. Barrick also increased, standing at $48.40, adding $0.72, or 1.51 percent. Eldorado finished the grouping off, rising to $18.57, an increase of $0.21, or 1.14 percent.
A number of diversified miners also benefited from the fall in jobs, anticipating higher metals' prices because of the falling value of the U.S. dollar, which will worsen from the Federal Reserve's inflating of the money supply.
Commodity prices in general will continue to increase in price because of the falling value of the U.S. dollar and inflation from the Federal Reserve's actions.
Thursday, October 7, 2010
Oil Prices Today Drop After Hitting 5-month High
After hitting a 5-month high above $84 a barrel, oil prices today dropped as investors looked at supply and demand rather than only the collapsing U.S. dollar.
That's not to say the weakening U.S. dollar isn't a factor, just that it's not the sole factor in oil price movements. No matter how weak the dollar is, consumers still must buy gas and oil in order to push prices up to high levels.
This is how it's going to go for some time into the future, not just for oil prices, but for commodity prices in general. Those moved by supply and demand, coupled with the drop in value of the U.S. dollar will do very well for some time.
After reaching $84.43 today, crude oil pulled back for November delivery to below $83. As of 1431 GMT, it stood at $82.83.
The push and pull of supply and demand versus the falling U.S. dollar will have oil and commodities performing in this manner going forward, as the market looks for a balance between the two.
In the short term at least, it is expected that oil prices will pull back more.
That's not to say the weakening U.S. dollar isn't a factor, just that it's not the sole factor in oil price movements. No matter how weak the dollar is, consumers still must buy gas and oil in order to push prices up to high levels.
This is how it's going to go for some time into the future, not just for oil prices, but for commodity prices in general. Those moved by supply and demand, coupled with the drop in value of the U.S. dollar will do very well for some time.
After reaching $84.43 today, crude oil pulled back for November delivery to below $83. As of 1431 GMT, it stood at $82.83.
The push and pull of supply and demand versus the falling U.S. dollar will have oil and commodities performing in this manner going forward, as the market looks for a balance between the two.
In the short term at least, it is expected that oil prices will pull back more.
Monday, August 2, 2010
Alexco Resource (AMEX:AXU), Mines Management (AMEX:MGN) Rise as Metals Price Move Up
Metals miners enjoyed a great day today, as a number of precious metals rose on an increased positive outlook by investors, even though many pointers are out there showing there's a lot of risk.
Even today's confirmation China is continuing to cool off their economy was pretty much shrugged off by investors, so you know emotion is ruling the market at this time. After all, if investors aren't concerned over China slowing down, they're looking in the wrong place.
News that Europe was allegedly improving in a non-story. That's the narrative the mainstream media is carrying now, and that probably won't change, even though the region remains under extraordinary stress.
For smaller miners like Alexco Resource (AMEX:AXU) and Mines Management (AMEX:MGN) though, they can move up nicely in investing environments like this, and did, with both of them moving up in conjunction with metals prices.
Alexco traded at $3.19 at the end of the day, gaining $0.11, or 3.57 percent. Trading volume was less than half the 3-month average, pointing to large caps being on the radar of traders at this time. Even so, those holding shares in the company enjoyed a nice move.
Mines Management (AMEX:MGN) made an even bigger move, as measured by percentages, ending the trading session at $1.62, a gain of $0.07, or 4.52 percent. Trading volume was also down for Mines Management as it was for Alexco.
As long as emotion and not facts rule the market, companies like these could move up nicely, although we know they can also come down just as fast when the other side of the picture is focused on.
The question is how long with the optimism remain and commodity prices continue to rise.
Even today's confirmation China is continuing to cool off their economy was pretty much shrugged off by investors, so you know emotion is ruling the market at this time. After all, if investors aren't concerned over China slowing down, they're looking in the wrong place.
News that Europe was allegedly improving in a non-story. That's the narrative the mainstream media is carrying now, and that probably won't change, even though the region remains under extraordinary stress.
For smaller miners like Alexco Resource (AMEX:AXU) and Mines Management (AMEX:MGN) though, they can move up nicely in investing environments like this, and did, with both of them moving up in conjunction with metals prices.
Alexco traded at $3.19 at the end of the day, gaining $0.11, or 3.57 percent. Trading volume was less than half the 3-month average, pointing to large caps being on the radar of traders at this time. Even so, those holding shares in the company enjoyed a nice move.
Mines Management (AMEX:MGN) made an even bigger move, as measured by percentages, ending the trading session at $1.62, a gain of $0.07, or 4.52 percent. Trading volume was also down for Mines Management as it was for Alexco.
As long as emotion and not facts rule the market, companies like these could move up nicely, although we know they can also come down just as fast when the other side of the picture is focused on.
The question is how long with the optimism remain and commodity prices continue to rise.
Monday, October 6, 2008
US Wheat Plunges on Economic Fears and Pressure
Commodities continue to take a beating as the markets worldwide become under increasing pressure. Wheat suffered along with most others as they tumbled on all the exchanges.
Along with the economic conditions, other factors were the stronger U.S. dollar and the drop in price of soybeans and corn. A stronger U.S. dollar makes investments in commodities less attractive to foreign traders.
The outlook for 2008 through 2009 looks somewhat grim for wheat, as outside pressures of the global economy continue and the projected record wheat crop drives prices further down.
Along with U.S. wheat production, Canada is raising its wheat production forecast, as are many other countries.
Much of that is because of increased number of acres being planted in wheat as well as expected good weather conditions.
On the Chicago Board of Trade December wheat dropped by 45 cents to $5.95 1/4 a bushel for December. December wheat on the Kansas City Board of Trade fell 42 1/4 cents to $6.28 1/4 a bushel, while December wheat declined by 38 cents to $6.64 3/4 on the Minneapolis Grain Exchange.
Along with the economic conditions, other factors were the stronger U.S. dollar and the drop in price of soybeans and corn. A stronger U.S. dollar makes investments in commodities less attractive to foreign traders.
The outlook for 2008 through 2009 looks somewhat grim for wheat, as outside pressures of the global economy continue and the projected record wheat crop drives prices further down.
Along with U.S. wheat production, Canada is raising its wheat production forecast, as are many other countries.
Much of that is because of increased number of acres being planted in wheat as well as expected good weather conditions.
On the Chicago Board of Trade December wheat dropped by 45 cents to $5.95 1/4 a bushel for December. December wheat on the Kansas City Board of Trade fell 42 1/4 cents to $6.28 1/4 a bushel, while December wheat declined by 38 cents to $6.64 3/4 on the Minneapolis Grain Exchange.
Friday, May 2, 2008
Wheat Climbs for First Time in Four Days
For the first time in four days, wheat increased in price, as investors think importers may start to increase acquisitions from the U.S. as wheat prices fave declined.
On Thursday the grain fell to $7.765 a bushel, the lowest price since November 20, 2007. It's also down over 40 percent in price from the record it attained in the latter part of February.
"Below $8 a bushel, we may see some buying interest from importers, who have been delaying purchases," said Kenji Kobayashi, a grain analyst at Kanetsu Asset Management Co.
Sales of U.S. wheat grew by 12 percent this week over last week, as they increased to 176,100 metric tons for the week ending April 24, according to the U.S. Department of Agriculture.
July delivery for wheat gained 2.5 cents, to reach $7.925 a bushel, as of 3:28 p.m. Singapore time. It gravitated from $7.90 and $7.9525 in CBOT after-hours trading.
Even with recent price decreases, wheat is still up by over 65 percent over last year. It reached a high of $13.495 on February 27 before falling back.
On Thursday the grain fell to $7.765 a bushel, the lowest price since November 20, 2007. It's also down over 40 percent in price from the record it attained in the latter part of February.
"Below $8 a bushel, we may see some buying interest from importers, who have been delaying purchases," said Kenji Kobayashi, a grain analyst at Kanetsu Asset Management Co.
Sales of U.S. wheat grew by 12 percent this week over last week, as they increased to 176,100 metric tons for the week ending April 24, according to the U.S. Department of Agriculture.
July delivery for wheat gained 2.5 cents, to reach $7.925 a bushel, as of 3:28 p.m. Singapore time. It gravitated from $7.90 and $7.9525 in CBOT after-hours trading.
Even with recent price decreases, wheat is still up by over 65 percent over last year. It reached a high of $13.495 on February 27 before falling back.
Wednesday, April 2, 2008
Wheat Futures Higher on Weather Concerns: both dry and wet
U.S. wheat futures finished higher at the exchanges, as they bounced back after the recent sell-offs, according to traders.
Contrary to the concerns over the wet acreage affecting planting of corn, wheat is having the opposite problem, as dry weather in key areas may end in the abandonment of wheat acreage in a number of places.
There were also concerns about some excess precipitation in soft winter wheat areas that could hinder planting.
For the Kansas City Board of Trade, May wheat increased by 36 cents to $9.86 a bushel, while the Minneapolis Grain Exchange May wheat increased by its allowable limit of 60 cents, to finish at $12.15. May wheat for the Chicago Board of Trade jumped by 41 1/2 cent to finish a $9.36 1/2.
Wheat inventory expectations and a possible large global planting had kept prices down for awhile.
Contrary to the concerns over the wet acreage affecting planting of corn, wheat is having the opposite problem, as dry weather in key areas may end in the abandonment of wheat acreage in a number of places.
There were also concerns about some excess precipitation in soft winter wheat areas that could hinder planting.
For the Kansas City Board of Trade, May wheat increased by 36 cents to $9.86 a bushel, while the Minneapolis Grain Exchange May wheat increased by its allowable limit of 60 cents, to finish at $12.15. May wheat for the Chicago Board of Trade jumped by 41 1/2 cent to finish a $9.36 1/2.
Wheat inventory expectations and a possible large global planting had kept prices down for awhile.
Tuesday, April 1, 2008
Wheat Prices Drop as Dollar Strengthens
Wheat and other commodities continue to fall on the assumption the strengthening U.S. dollar and equities market will continue to rise.
Another variable is the increase in planting this year which could cause prices to fall in the long term.
"Some of the financial stocks look better, and some people feel that the worst is over" for the U.S. economy, said Vince Ambrose, a trader at MF Global in Chicago. "With the dollar being strong, it's going to hurt these commodities."
Wheat futures fell by 15 cents for May delivery, to $9.14 a bushel on the CBOT at about 12:30 p.m. Earlier in the day they fell to the lowest since January 11, selling for $8,9875 a bushel. Monday's contracts fell by 60 cents, the maximum allowed on the exchange.
Inventories, which fell last year because of poor weather, should increase this year with the larger acreage planted.
Winter Wheat
U.S. farmers have planted 4.1 percent more winter wheat than last year during September through December, according to the report released by the U.S. Department of Agriculture.
Spring wheat sowing is also expected to increase by 7.8 percent over last year's April and May plantings.
"I don't see wheat falling out of bed," said Vince Ambrose, a trader at MF Global in Chicago. "Everybody grows wheat, and the weather looks better, maybe not so much in the U.S. but globally. Along with that, we'll see lower prices down the line."
The increase in planting and supply should keep the wheat prices down more than in the recent past.
The wheat crop in the U.S. is worth about $13.7 billion, the fourth-largest crop in the U.S. The leading crops are corn, soybeans and hay.
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