Corn Prices Remain Underpinned by U.S. Planting Delays and Ukraine Grain Unavailable for Export

Grain traders squared positions ahead of the Easter holiday weekend on Thursday. Corn prices fared the best up nearly 1% on a round of technical buying. Soybean contracts trended slightly higher while wheat prices fell significantly, with most contracts down 1.5% to 2.5% on profit-taking. Corn prices remain underpinned possible U.S. planting delays and Ukraine grain unavailable for export. May corn futures added 7.5 cents to $7.91, with July futures up 6.5 cents to $7.8450. Corn export shipments were 1% … Continue reading “Corn Prices Remain Underpinned by U.S. Planting Delays and Ukraine Grain Unavailable for Export”

Extreme Commodity Prices Volatility Pressures Commodity Trading Houses Bonds

The explosion in commodity prices volatility has seen coal, oil and natural gas prices surge, the Nickel market halted for a week and grains prices hitting record highs. Unintended consequences and contagions flow through in heavily levered and multi-faceted financial markets. In the past week, the yield on Gunvor Group Ltd. bonds due in 2026 rose as high as 16.8%, Trafigura Group bonds due in 2025 rose to almost 10%. Credit default swaps on Louis Dreyfus Co. debt on Friday … Continue reading “Extreme Commodity Prices Volatility Pressures Commodity Trading Houses Bonds”

The Energy Crisis and Volatility See Natural Gas and VIX the Best Performing Futures in January

Futures and commodities had a volatile start to 2022. January was about the energy crisis and interest rates and inflation. This pattern accelerated after the Fed minutes of the December FOMC took hold. This was borne out by the best performing futures being natural gas, VIX and Palladium. Energy was five of the highest gains for the month. The worse were lumber, ethanol and the major stock market indices. For the month S&P and Nasdaq have their worst month since … Continue reading “The Energy Crisis and Volatility See Natural Gas and VIX the Best Performing Futures in January”

Soaring Aluminum Prices Boost Alcoa Earnings to Highest Growth Rate in Over Five Years

Aluminum producer Alcoa reported better than expected fourth quarter earnings on Wednesday. Aluminum has seen prices rise 50% yr/yr. AA reporting quarterly records for adjusted net income and adjusted EBITDA. Revenue rose 38% yr/yr, Alcoa’s highest growth rate in over five years. Alcoa Corp NYSE: AA Reported Earnings After Close Wednesday $2.50 Beat $1.93 EPS AND $3.30 Billion Beat $3.30 Billion Forecast in Revenue Earnings Alcoa reported $896 million in Ebitda in line with estimates. Adjusted earnings of $2.50 a share … Continue reading “Soaring Aluminum Prices Boost Alcoa Earnings to Highest Growth Rate in Over Five Years”

Oats, Coffee, Canola and Lumber Pip Energy as Best Performing Futures in 2022

Agricultural and energy futures and commodities rose sharply pumped by the reopening of economies in 2021 with the Covid -19 knock ons running roughshod over supply routes and employment. The biggest losers were last year’s winners, safe haven elements such as the VIX, treasuries and foodstuffs. Oat Futures closed up 89.74% this year. back in October the United Nations index shows that global food prices recently hit a decade high, oat futures hit an all-time high of $6.36 a bushel … Continue reading “Oats, Coffee, Canola and Lumber Pip Energy as Best Performing Futures in 2022”

Soybean, Soyoil and Soymeal Prices Fall With Broad Commodity Selloff

Soybean prices were hit by a general financial market malaise Friday after the Omicron variant hit the airwaves and a broad range of commodities. Soybean prices closed around 1% lower. Soyoil futures were much weaker falling 3% lower, with soymeal losing around 0.5%. Soybean prices closed around 1% lower. January futures fell 13 cents to $12.53 and March futures fell 13.75 cents to $12.6350. Soyoil futures were much weaker falling 3% lower, with soymeal losing around 0.5%. Soybean basis bids … Continue reading “Soybean, Soyoil and Soymeal Prices Fall With Broad Commodity Selloff”

Corn Avoids Commodity Selloff After Strong USDA Export Data

Commodities sold off across the board after the new Covid variant Omicron caused fear and uncertainty in Friday’s shortened session. Corn prices were in the red most of the day but turned green after better-than-expected export data from USDA took hold. Corn’s late-session rally helped prices jump more than 1% higher by the close, December futures added 6.5 cents to $5.8625, with March futures up 6.25 cents to $5.9175. Preliminary volume estimates were for 296,804 contracts, falling well below Wednesday’s … Continue reading “Corn Avoids Commodity Selloff After Strong USDA Export Data”

Oats, Canola, Cotton All Pip Silver and Oil as Best Performing Futures in October

Futures and commodities contined to be volatile in October of 2021 as energy markets ran roughshod. The biggest gainers were safehaven elements such as precious metals silver, platinum and palladium along with foodstuffs such as grains. The weakest was VIX as you would expect with US stock indices at record highs

Freeport McMoran Triples Profit With Record Copper Prices

Freeport-McMoRan, the world’s biggest publicly listed copper producer more than than tripled its profit in Q3. Higher copper prices and an increase in demand for the metal at a time when copper inventories are plunging. $FCX has been repaying debt and distributing dividends from the surge in revenues.

Fitch Expects Immigration Loss Due To Covid Lockdown To Weigh on Australia’s Growth

Australia growth pre-pandemic was one of the strongest in the developed world. The rapid rise in the working age population with fast net immigration accounting for over half of the expansion helped fuel the strength. Fitch believes the Covid Lockdown to weigh on the recovery GDP in the medium term.