Linked In
News In
Linked In

You are viewing 1 of your 2 complimentary articles.

Register now to receive full access.

Already registered?

Login | Join us now

Morning markets: crops sweat over swine fever

Twitter Linkedin

Commodities started the week in a stew over swine flu, as fears that pandemic would knock demand for meat and grains sent.

Concerns over the outbreak sent prices in many financial markets into reverse – with gold, a safe haven, a notable exception. The price of New York crude for June dipped 2.6% to $50.23 a barrel, with Brent crude down 1.9% at $50.68 a barrel at 06:15 GMT.

However, commodities were particularly badly hit as investors mulled the impact's effect on the meat industry, and thereby on demand for livestock feed.

The outbreak has already prompted security measures, with Russia banning imports of raw pork and pork products from Mexico and the US states of California, Texas and Kansas.

Down markets

May soybeans slumped 50.25 cents – or 4.8% - to $9.90 a bushel in Chicago, with May corn falling 14.25 cents, or 3.8%, to $3.62 ¾.

May wheat was the best of a bad bunch, down 12.25 cents, or 2.3%, at $5.20 a bushel.

Palm oil too was affected, giving up some of last week's gains, and ignoring hopes for Malaysian palm export data due later. Bursa Malaysia's benchmark July contract stood 93 ringgit, or 3.6%, down at 2,492 ringgit a tonne, albeit above a day low of 2,475 ringgit a tonne.

"The palm oil market is pausing its rally to take stock of this swine flu fear," a trader said. "If soyoil drops, we will suffer indirectly."

By Mike Verdin

Twitter Linkedin
Related Stories

Evening markets: South American double whammy brings ags back down to earth

Ags lose early gains, undermined by a tumble in Brazil’s real, and falling rain in Argentina. Still, wheat futures remain in positive territory

Can cotton prices extend their rally?

History suggests futures will not stay long in the 70s cents a pound. So which way will they trend?

Morning markets: Hard wheat regains premium over soft, amid US dryness worries

Kansas City wheat outperforms, as Plains precipitation worries extend to a dearth of snow cover. But Kuala Lumpur palm oil hits a 16-month low

Evening markets: Ags gain, as funds begin to get that year-end festive mood

Ag prices recover, helped by the likes of more positive comment on US export competitiveness, and some more negative talk on Argentine rains
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 the Briefing Media group
Agrimoney Ltd is registered in England & Wales. Registered number: 09239069