Cocoa Grinds To A Halt
Cocoa is erasing some of the gains accumulated after a
five-day rally, falling due to a weaker-than-expected second-quarter US grind
report Friday. Although the report showed 5% more cocoa beans were ground from
year-ago levels, the amount of cocoa butter and liquor melted was down almost
50%, reflecting diminished demand and a huge year 2000 harvest surplus. Cocoa is
down 5%, or $46 a ton at 841.Â
With the worst of the cold season largely over in Brazil
and forecasts of freezing temperatures failing to materialize in the primary
growing regions, September coffee
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lower Monday, plunging back to within one-day’s trading range of contract lows.
The contract is 12%, or 11.65, lower at 85.00.
Unable to extend a three-day rally and move beyond a
recent 20-day high, September T-bonds
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Sell setup, falling as traders await confirmation that the economy has
slowed enough to keep inflationary pressures at bay. Consumer confidence
(consensus 139.00) on Tuesday, durable goods (consensus .5%) and employment cost
index (consensus 1%) on Thursday, and Q2 gross domestic product (consensus 3.5%)
on Friday will provide clues this week about the pace of economic and price
growth.
With the peak driving season now approaching completion,
demand for fuel is falling, sending crude oil
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are also lower on ideas that demand for nat gas for cooling will decrease and
supplies (injections) into storage will rise. Natural gas,
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unleaded gasoline notably posted on the Implosion-5 List
for the first time after rallying to multi-year highs.