Trending
Tensions Push Oil Up
Thursday night's oil prices placed West Texas Intermediate crude over $104 per barrel and Brent crude over $110. The price jumps reflect increased political tensions between the US and Iran and military attacks by both sides. A U.S. shortage of refining capacity sent diesel prices upward even more than crude prices.
Interest Rates, Heads Up?
Expectations have increased that the Federal Reserve will raise interest rates at its meeting next week. Thursday, the US Producer Price Index showed a jump of 1.1% for final demand goods. The consumer price index was announced Friday as a 0.4 % rise for the month of August. These increases could result in a stronger US dollar, moving the 10-year treasury yield toward long-term highs. Interest is often considered a component of commodities prices and could become a major cost to producers who are borrowing in order to supply our basic needs.
Whether To Raise Prices?
Extreme weather is an increasing force affecting global markets. A flood traveling 100 kilometers, which destroyed infrastructure and an important trade corridor between Nepal and China was attributed to glacier-related slope failure. In addition, Canadian wildfires, low grain yields due to drought, and European/ North American heat waves illustrate how weather related disruptions affect production, transportation and supply chains. The fast rise in costs to both producers and consumers are impacted by the rate of increased costs related to climate issues. Grain buyers received a bit of reprieve on Friday due to USDA reports which indicated slightly larger US crops than had been anticipated. Soybeans hit a record contract high early in the week but fell 37 cents per bushel on Friday.
CME midday prices - November Soybeans, $12.99; December Corn, $5.32; December Wheat, $7.26. Livestock per 100 pounds: October Cattle, $219.62; October Hogs, $81.60. Metals per troy ounce: December Gold, $4,393; December Silver, $64.90, December Copper per pound: $6.55. October Crude oil per barrel: (WTI) $99.90. September S&P futures traded at 7670.
------------
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.