Mad Cow–Confirmed!

May durable goods orders rose 5.5%, much
higher than expected. Ex-transportation, it fell -0.2%. New home sales for May
rose 2.1% to 1.298 million units, more than expected.

Metals and copper are still hot, as homebuilding
and aircraft manufacturing continue strong.

The FOMC meets next week. Economists are looking for
a quarter point rise–to 3.25%–and no major change in the policy statement.
Specifically, the words “accommodative” and “measured pace” are expected to
remain intact.

August gold was $2 higher on the week, closing at $442.

Coffee sank to a 5-month low as funds took profits and
went short. Brazil’s 2005-2006 harvest–smaller than last year’s–ends in
September. In Columbia, the next main harvest begins in September.

Corn prices are being driven by ethanol and hot
weather. Traders are comparing current conditions to the 1988 dry spell. Traders
were afraid to go home short this weekend.

A second U.S. case of Mad Cow disease was confirmed.
The cow did not enter the food chain,
according to the USDA.
Cattle ended mixed; the
report came out after cattle closed.

New Zealand’s GDP rose 2.5% in Q1, weaker than
expected.

The yen traded lower on concerns that the Japanese economy is
vulnerable to high oil prices.

China is using more sugar, which is driving prices
higher. Sugar is near 3-month highs.

Brice Wightman