Linked In
News In
Linked In

You are viewing your 1 complimentary article.

Register now to receive full access.

Already registered?

Login | Join us now

Evening markets: pigs start flu recovery

Twitter Linkedin eCard

Pigs began to gain investor reprieves on Wednesday after three days of swine flu rout, although near-term contracts failed to win grace from further losses.

Chicago's May hogs had lost a further 2.35 cents, or 3.7%, to 60.95 cents a pound by 16:30 GMT. The decline took the contract's losses since last Thursday, the last day before swine flu reports reached the market, to 12.4%.

However, helped by stronger external markets and a slowdown in negative swine flu newsflow, investors began to look to a market recovery further along the line, raising June hogs by 1 cent to 66.4 cents a pound and the July contract to 68.25 cents a pound.

It was the reverse for pork bellies, where investors fussed about mid-summer exposure. The May contract added 0.55 cents to 77.4 cents a pound taking it even with the July contract, which lost 0.8 cents. August pork bellies, meanwhile, added 0.5 cents to $76.95 cents a pound.

Nonetheless, the wreckage from the flu epidemic makes sorry reading. June hogs have lost 7.6% since Thursday night while the contract July has slipped 6.7%. In pork bellies, May has shed 5.9% and the July contract 7.8%.

Grains gain

Grains, meanwhile, continued to put further distance between themselves and Monday's slump, with soybeans perked up by an official report of a 100,000 order for 2009-10 beans to an unknown destination – generally assumed to be China.

That said, it was May soybeans which made the biggest splash - adding 17.5 cents to $10.07 a bushel - with new crop beans making smaller gains, a paradox some traders put down to unpredictable movements as investors shift positions ahead of the contract's expiry.

Corn was also back in favour, up 5.5 cents at 3.80 ¾ a bushel for May as fears waned further that swine flu would prompt a massive cull of animals, taking demand for livestock feed with it.

Wheat continued to be helped by backward plantings of the spring wheat crop, adding 5.75 cents to $5.16 ¼ a bushel for May, a trend mirrored across the Pond, with London May wheat adding £1.50 to £110.75 a tonne and Paris wheat up E1.25 at E140.50 a tonne.

'Healthy correction'

Earlier, palm also staged a rebound, with the benchmark July contract bouncing from one-week lows to close 24 ringgit higher at 2,480 ringgit a tonne.

"Perhaps we are getting back to our own fundamentals of higher demand and tight stocks. We had a healthy correction and now it's time to jump back in," a dealer told Reuters, the news agency.

Softs, meanwhile, remained near opening prices amid thin trade as investors awaited fresh news.

New York cocoa actually closed where it started, at $2,403 a tonne. Sugar for July ended 0.4% lower at 13.98 cents a pound, while coffee edged 0.1% higher to $116.40 a pound.

Twitter Linkedin eCard
Related Stories

Evening markets: Argentine moisture slips up soymeal rally. But weather revives wheat

Meal futures dip, a little, for the first time in 12 sessions. But wheat futures gain, as drought spreads in Kansas, and cold reaches Europe

Morning markets: Ag futures ease, as traders await key 2018 forecasts

US officials will later on Thursday issue the first of a series of forecasts for US crops in 2018-19. Markets are cautious in the mean time

Evening markets: Cotton rebounds 4% in two sessions. Soymeal recovers poise too

And even wheat futures end above intraday lows, as Russian cash prices rise, as to Paris futures as EU cold approaches

Glencore Agri manages 'resilient performance when compared to many peers'

... says Glencore, with strong Australian and Russian export market helping offset rapeseed crush setbacks and "limited arbitrage opportunities"
Home | About | RSS | Commodities | Companies | Markets | Legal disclaimer | Privacy policy | Contact

Our Brands: Comtell | Feedinfo | FGInsight

© 2017 and Agrimoney are trademarks of Agrimoney Ltd
Agrimoney is part of AgriBriefing Ltd
Agrimoney Ltd is registered in England & Wales. Registered number: 09239069