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Energy and Agricultural Markets Reverse Gains

October 7, 2014 at 11:51 by Vladimir Vyun

Crude oil retraced yesterday’s gains, falling during the current session, as German’s industrial production was worse than analysts have expected, adding to concerns about Europe’s economy. Production was down 4.0 percent in August from the previous month on a seasonally adjusted basis, compared to the expected drop of 1.6 percent. Oil prices usually move in correlation to global economic growth, making poor indicators detrimental to the commodity’s performance. November futures for WTI crude oil declined 0.28 percent to $90.09 per barrel as of 11:32 GMT on NYMEX today. Brent grade of crude lost 0.47 percent to $92.35 per barrel on ICE.

Corn and soybeans also reversed their yesterday’s gains as experts speculated that the harvest may be bigger than the official projections that have already promised record yield. Other softs also declined. At the same time, some specialists argued that grains may yet resume rally as wet weather should delay harvest. The US Department of Agriculture reported yesterday that farmers gathered 17 percent of US corn, compared to the 32 percent five-year average for this period of the year. December contract for corn edged down 0.45 percent to $3.3100 per bushel on CBoT today. November soybeans declined 0.64 percent to $9.3625 per bushel.

If you have any questions and comments on the commodities today, use the form below to reply.

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