Brazilian Rain Soaks Coffee And Soybeans

Wet weather in Brazil improved the forecast for a good harvest in both the coffee and soybean crops, sending both commodities sharply lower. Brazil is the largest producer of coffee and is second only to the United States in soybean exports. Coffee [KCH0>KCH0] fell 6.85 to 122.25.

Soybeans [SF0>SF0] were poised to make a big move after registering for several days on the Multiple Days Low Volatility List and ended 12 1/2 lower at 459 1/2. Soybean oil [BOF0>BOF0] registered on the 6/100 Low Volatility List and tumbled .51 to end at 15.84. Soymeal [SMF0>SMF0] closed 2.6 lower at 145.0.

March T-bonds [USZH0>USH0] traded in a narrow range near their 10-day high and ended up 7/32 at 93 3/32.

In a bumpy session, stock index futures ended mixed. March Dow futures [DJH0>DJH0] rallied 94.0 to 11,287.0, S&P futures [SPH0>SPH0] added 5.10 to 1429.20 and NASDAQ 100 futures [NDH0>NDH0] gained 2.00 to 3211.50.

In the currencies, December dollar index futures [DXZ9>DXZ9] rose .34 to 101.0.
The Swiss franc [SFH0>SFH0] fell along with the Euro as traders interpreted comments from a European central banker to mean the bank would not step in to prevent the unit from falling (it recently fell to its lowest level since inception). The Japanese yen [JYH0>JYH0] rose in anticipation of a bullish economic report, ending .043 higher at .9914.

Energies took a tumble following statements made by Energy Secretary Richardson that oil prices were too “high” and that the government could sell emergency stockpiles to protect American consumers if prices remain high. January crude [CLF0>CLF0] slipped .39 to 26.15, unleaded gas [HUF0>HUF0] lost .0169 to .7152 and heating oil [HOF0>HOF0] dropped .0159 to .6500.

From the Implosion-5 List, February gold [GCG0>GCGO] slipped another 3.8 to 280.3, on word that Malaysia, Russia and Switzerland are selling gold bullion stocks on the international market.

February pork bellies [PBG0>PBG0] found resistance at their all-time high, then sold off to end down .875 at 79.900. January live cattle [LCF>LCF0] and feeder cattle [FCF0>FCF0] also fell ending and closed .400 and .275 lower, respectively.