Frost Talk Heats Up Coffee
Coffee rallied for a second day off multi-year lows as
meteorologists transmitted forecasts of crop damage in Brazil’s important Sao
Paulo and Minas Gerais growing regions. Brazil is the world’s largest producer
of coffee. The National Meteorological Service indicated that chances for frost
this weekend in these regions was near 80%. September coffee
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6.55 to 92.90 for a two-day gain of 11%.
September sugar
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rising .17 to 8.83 and traded up to the top of a pennant. Sugar is trading close
to the trigger point of its
Pullback From High
setup.
Stocks index futures rallied Tuesday morning in response to a
speech by Federal Reserve Chairman Alan Greenspan. In his speech to the National
Governors Association in Pennsylvania, Greenspan spoke about the higher level of
job insecurity that is resulting from rapid technological change and how this
factor is exerting unforeseen, beneficial effects on the economy. Stocks traders
construed the comments to mean the Federal Reserve would put a halt to its
year-long campaign of interest rate rises.
Blue chips are seeing the biggest benefit from the Chairman’s
comments in Tuesday’s session. The Dow is up 114 to 10,761, the S&P 500 is
up 4.01 to 1479.68 while the Nasdaq is lagging, down 18.54 to 3961.75.
Greenspan pointed out that the potential of "job
skill obsolescence" in a rapidly changing economy is having the effect of
keeping a cap on worker demands for higher wages. He also noted that the need to
continuously update skills will continue to create a more educated workforce and
lead to greater innovation, all pluses for the economy and productivity.
Dow futures
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10,815.0. The S&P futures
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NASDAQ 100 futures
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46.50 at 3787.50 and were weighed down by continuing woes by heavyweights
Qualcomm
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which fell for a second day after agreeing to buy SDL
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Lean hogs and pork bellies took a sharp dip as large supplies of pork hit the
market. Large brokers liquidated longs and sent nearby August hogs
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down their daily limit of 2.000 to close at 67.750. August pork bellies
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also fell, losing 1.750 to 87.900.
Grains continue to decline and make good on their
Implosion-5 List
readings as excellent weather and Midwest growing conditions furthered prospects
for a good crop. The view that Wednesday’s U.S. Department of Agriculture
supply/demand report could show a large crop estimate added to grains’ weakness. December
corn
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3/4.