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Will Texas Be Relieved from Drought? Pork Glut; New Price Mechanism of BHP

July 29, 2009 at 19:51 by Vladimir Vyun

Texas may be relieved from drought by El Nino. The worst drought in Texas for 90 years causing concerns for crop harvest may be ended by the return of an El Nino climate pattern to the Pacific Ocean, characterized by warming waters. Damage to orange groves in Florida by hurricanes can also be reduced. The concern for harvest of U.S. crops caused cotton to gain a 10-month high on July 21 on ICE Futures U.S. in New York, while prices for orange-juice have increased 39 percent this year.

Hogs decline as heavy animals may cause glut. Hog producers are trying to make money by overfeeding hogs and this cause concern about a pork glut leading to drop in hog futures. October futures for hog dropped $0.0055 (1 percent) to $0.5215 per pound by 9:48 on the Chicago Mercantile Exchange.

The world’s largest mining company, BHP Billiton Ltd., agreed to sell 30 percent of its iron ore under new pricing system putting an end for tradition of settling annual contracts in Asia. The ore will be sold through a mix of cash, quarterly and indexed pricing. BHP dropped 1.6 percent to $37.43 as of the 16:10 Sydney time close on the Australian stock exchange.

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