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Will U.S. Cotton Production Exceed Forecast? Decline of Gold & Copper

August 10, 2009 at 22:02 by Vladimir Vyun

U.S. cotton production may exceed the government’s forecast. Forecast in August predicts that farmers will harvest 13.5 million bales, compared to a July forecast of 13.25 million. July provided above-normal temperature and moisture enough to make favorable conditions for crop in Texas and southeastern states. December futures for cotton delivery gained $0.0157 (2.6 percent) to $0.6243 per pound on ICE Futures U.S. in New York on August 7th.

Gold falls as dollar increases and equities decrease today. Some weakness in the stock markets and dollar rebound causes demand for gold as alternative investment to decrease making some investors to sell gold. But there is speculation that some investors may buy gold after prices would fall as hedge against future dollar slide. December futures for gold fell $12.60 (1.3 percent) to $946.90 per ounce by 12:41 on the New York Mercantile Exchange’s Comex division.

Copper decline erased previous gains because of concerns that metal’s rally was exaggerated. Worldwide decline in demand for the metal threatens rally. As Goldman Sachs JBWere said, base-metals prices have run faster than justifiable. China is exception as its economic growth almost doubled copper prices. September futures for copper delivery slid $0.015 (0.6 percent) to $2.7705 per pound on NYMEX.

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

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