Beans Bolt Higher On South-Of-The-Border Dryness
Forecasts for above normal temperatures in one of Brazil’s largest soybean growing states sparked a fund-led rally in the bean complex. Brazil is the world’s second largest exporter of soybeans. Also supporting prices was a government report predicting the crop would drop by over 5% from last year.
January soybeans [SF0>SF0] surged 10 1/4 to 467, soymeal [SMF0>SMF0] rose 2.1 to 147.9 and soybean oil [BOF0>BOF0], hinting it might rise sharply by registering on the 6/100 Low Volatility List, posted the largest percentage gains, rising .39 to 16.04.
March T-bonds [USZH0>USH0] remained pressured on traders’ views that the Fed will raise rates at its next meeting in February. The bonds came within two ticks of matching their contract low then rose to finish up 1/32 at 91 2/32.
Stock index futures extended late gains to end on positive turf. From the Momentum-5 List,
NASDAQ 100 futures [NDH0>NDH0] ended 20.50 higher at 3619.50, March Dow futures [DJH0>DJH0] edged up 9.0 to 11,355.0 and the S&P futures [SPH0>SPH0] tacked on 3.00 to 1457.50.
March dollar index futures [DXH0>DXH0] closed .02 lower at 101.55 in thin trading. The Japanese yen [JYH0>JYH0] posted the biggest gain against the dollar, rising .0039 to .9956.
Energy contracts took a hit as the American Petroleum Institute’s (API) weekly report showed inventories did not fall by as much as expected. February crude [CLG0>CLG0] fell .76 to 25.50, unleaded gas [HUG0>HUG0] dipped .0168 to .6925 and heating oil [HOG0>HOG0] lost .0114 to .6740.
Trade in January natural gas [NGG0>NGG0] was also lower on unseasonal warmth in the Midwest: The February contract closed .074 lower at 2.445.
In precious metals trading, March silver [SIH0>SIH0] rose 6.7 to 526.7 and copper [HGH0>HGH0] surged to a new high, rising 2.05 to 85.35.
Coffee [KCH0>KCH0] extended its losses for a second day, continuing to reel from a Brazilian government report estimating that next year’s crop will be slightly larger than traders had been anticipating. The March contract lost 3.05 to close at 117.65. Cocoa [CCH0>CCH0] also fell 17 to 808.