Natural Gas And Oil Rise As Hurricane, Heat Bear Down On U.S.

U.S. 30-year bond prices rose today after the U.S. government
said it would boost sales of the long-term bond. The 30-year is the worst
performing U.S. security available to purchase, and has declined around 6% since
the sale on February 9. The increased supply is thought not to have a huge
impact on the price. 10-year yields fell to new 1-month lows, as investors
remain divided on the prospect of rate hikes. A private economic report
released tomorrow could show that service growth has slowed for the third
straight month, which would make a Fed pause much more likely.

The euro fell against the dollar today, as investors locked in
gains ahead of tomorrow’s European Central Bank meeting, where the ECB is
expected to raise rates. The rates are already priced into the market, as
investor sentiment heavily favors a rate hike. The dollar remained
basically unchanged in trading against the Japanese yen.

The softs traded flat to lower today. Cocoa traded with
no change, coffee fell 0.2%, orange juice fell 1.5% and sugar fell 2.5%.

Grains rose across the board. Corn traded up 2.8%, wheat
rose 2.3% and soy rose 1.4%.

The energies all rose today. Natural gas rose nearly 3%
as a deadly heat wave continues to ravage the Northeastern United States.
Demand has shot up for natural gas as Tropical Storm Chris bears down on Florida
and the hot weather shows no signs of letting up. Crude oil climbed 1.2%
to close at $75.81 on more storm-related fears.

The metals rose across the board today. Silver stood
out, closing up 4.3% for the day. Gold traded up 0.8% and aluminum was up
0.3%, after a slide yesterday.

Meats fell across the board, with feeder cattle down 1% and
potbellied pigs down 1.5%.


Economic
News

Oil, Gasoline Inventories Decline (full
story
).

Treasury To Issue 30-Year Bonds On Quarterly Basis (full
story
).

John Patrick Lee