Crude oil closes at a 2-week low
Oil and Gas prices
continued their descent despite
the latest figures from the Gulf of Mexico. The latest
Evacuation and
Production Shut-In Statistics released by the US Minerals Management Service
showed less than a 1% improvement in both oil and gas production.
Crude Oil -2.41% closed below $65, a 2-week low.
Heating Oil -4.48% and Natural Gas -3.91% were the biggest percentage
losers among the energies.
The US dollar rallied following comments by the Federal
Reserve Bank of Chicago President Michael Moskow that the Fed needs to address
inflation pressures by increasing interest rates.
The news sent US treasuries lower. 10yr T-Notes -0.31%
experienced their biggest 2-day decline in over a month, while the 5yr T-Note -0.20% and 2yr T-Note
-0.10% also declined.
The entire grains sector closed lower today. Among the major
contracts, leading the decline was Soybeans -1.30%, Corn -1.02%
and Wheat -0.55%.
Coffee -6.19% hit a 9-month low as reports began to
emerge that stocks warehoused in New Orleans weren’t as badly damaged as
previously expected. Lumber -3.25% closed limit down after an impressive run of
late. Cotton +2.12 and Cocoa +0.65 closed higher.
In the Livestock group Lean Hogs -1.04% and Pork Bellies
-0.78% closed lower, Feeder Cattle +0.27% and Live Cattle +0.06% closed higher.
Economic News
MBA Purchase Applications:
Purchase Index – Actual 470.6
ICSC-UBS Store Sales:
W/W Change – Actual 0.0%
Productivity and Costs:
Non-farm Productivity, Q/Q Change – Actual 1.8% Consensus 2.1%
Unit Labor Costs, Q/Q Change – Actual 2.5% Consensus 1.5%
Bank of Canada
Raised interest rates 25bp to 2.75%
Ashton Dorkins