Trending
Cotton Collapses
A slight improvement in the crop condition report and already sky-high prices triggered a near six cent plunge in December cotton. By Thursday evening, futures were trading at 86.45 cents per pound, a daily change down about 2.79%. On-going drought in much of the cotton growing region and higher crude oil prices should have helped hold prices higher but former cotton bulls ran for the doors, taking profits and then trying to escape near-panic selling. Higher oil prices create higher costs for polyester which is now a major component of US clothing, so the war and higher production costs of oil should make cotton prices increase. That did not happen this week.
Beans Bounce on Chinese Interest
Beans retreated briefly on Thursday but were able to recover and close higher, posting the highest close in three years. Traders remain hopeful that the proposed Trump/Xi meeting in Washington, scheduled for Sept. 24, will result in China buying beans, though new tensions over Chinese/Iran relations could hex that deal. Poor finishing weather resulting in smaller pod filling and a few Chinese flash sales buoyed beans during the week as next Friday's USDA report added more suspense. Agricultural futures will be closed on Monday for Labor Day though financial futures will be opened.
Gold Moved from New York Due to Unrest
The Wall Street Journal reported on Friday that $11 billion in gold (78 metric tons) was moved in a high-security operation from Manhattan to the UK due to concerns about increasing geo-political unrest. The move, orchestrated by the Dutch Central bank, flew the gold from vaults below the streets of Manhattan and stored most of it in London though some went to vaults in Canada. The move "follows 18 months in which relations between the U.S. and Europe have frayed over tariffs, President Trump's threats to seize Greenland and equivocation over U.S.'s military backing" the Journal stated. The price of gold fell this week to the $ 4,460 area.
CME midday prices - November Soybeans, $13.12; December Corn, $5.38; December Wheat, $7.37. Livestock per 100 pounds: October Cattle, $213.75; October Hogs, $82.40. Metals per troy ounce: December Gold, $4,480; December Silver, $66.65, December Copper per pound: $6.68. October Crude oil per barrel: (WTI) $91.30. September S&P futures traded at 7727.
------------
Walt Breitinger is a commodity futures broker in Indiana. He can be reached at 800-411-FUTURES (3888) or www.indianafutures.com. Pinion Futures, LLC, a CFTC registered Introducing Broker and NFA Member (NFA #0284447,) is a fully owned subsidiary of Pinion Risk Management LLC. Information contained herein is believed to be reliable but cannot be guaranteed as to its accuracy or completeness. Futures and options trading involve substantial risk of loss and is not suitable for all investors.