Gas prices fall below $3
Energy prices continued to decline, with
the average price paid at the pump falling below $3 for the first time since
hurricane Katrina struck. The latest report by the US
Minerals Management Service (click
here) showed over 57% of oil production an more than 37% of gas production
still offline.
Crude Oil -1.15% closed at $63.34 per barrel, Harbor
Unleaded Gas -4.39% and Heating Oil -4.33% were the biggest
percentage fallers. Natural Gas -2.06% also closed lower.
Falling energy prices dragged US treasuries with them. The US
10yr T-Note -0.32%, 5yr T-Note -0.14% and 2yr T-Note
-0.05%.
The US Department of Agriculture
Crop Report released today showed Corn production +3%, Soybean production
+2% and Cotton production +5% since the August forecast. Corn production is
forecast at 10.6 Bln bushels, the second largest crop ever but 10% lower than
2004. Soybean production is forecast at 2.86 Bln bushels, 9% below 2004 (the
all-time high). Cotton production is forecast at 22.3 mln 480-pound bales, 4%
below 2004.
Soybeans -1.41%, Corn -1.17% and Cotton
-1.54% all closed lower following the report.
Coffee -3.56% closed at its lowest level in over
10-months. Cocoa -3.01% also closed lower, Frozen Orange Juice
+2.28% was the only soft commodity to close higher.
Livestock closed mixed with none of the contracts closing + or
– 1%.
In the metals, Copper +2.49% was the only notable mover. The
rise in Copper prices was the largest in 3-months and followed the release of
inventory data by the London Metal Exchange (LME).
Economic News
No economic news today
Ashton Dorkins