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05 November 2008 at 05:55 IST
Is the global flight to US dollars finally wearing out?
Commodity OnlineIt is election day in the U.S. and, overall, the weather is favorable for the record high turnout that is expected. The December S&P 500 closed up 33.70 at 1,003.20, the best close in over two weeks, with most commentators expecting Barack Obama to be the next President of the United States.
Is the world's flight to U.S. dollars finally wearing out? The December U.S. dollar index fell 1.615 cents to 85.37 and most commodities closed higher in relief.
U.S. factory orders were down 2.5% in September, weaker than expected. The September 2009 eurodollars were up .205 to 97.72, the highest close in a week.
Grains and Cotton
Late yesterday, the USDA said that 55% of the corn crop was harvested, still down from the five-year average of 79%. 86% of the soybean crop was harvested, close to its normal pace. Overall, grains were higher, helped by today's drop in the dollar. December corn finished up a dime at $4.13.
Archer Daniels Midland said that it earned $1.05 billion in the quarter that ended on September 30th, up from $441 million a year ago. Much of the gain came from oilseeds processing and a change in the way that ADM accounts for inventory.
December cotton closed up 1.64 at 46.32, the best gain in over two weeks with help from the outside markets.
Livestock The outlook for the economy is poor, but December cattle closed up .52 at 93.85, the highest close in over three weeks.
Lumber Even January lumber showed strength today, closing up $2.40 at $205.50, its highest close in two weeks.
Cocoa Is the Ivory Coast's cocoa crop in trouble? Reuters news reported that exporters are telling them that damp conditions and black pod disease have reduced the harvest estimate by more than 8% and hurt the quality of the beans that do get harvested. December cocoa was up $30 at $1,999.
Coffee The world may be in a recession, but people will probably keep drinking coffee. December coffee closed up 4.35 cents at $1.1670, the highest close in over two weeks.
Sugar March sugar closed up .53 at 12.71, a new one-month high, helped by today's weaker dollar and jump in gasoline prices.
Metals December gold jumped up $30.50 to $757.30, helped by today's weaker dollar and the general climate of falling interest rates. December silver closed up 38 cents at $10.13, the highest close in over two weeks.
Energies Is the down-trend over for crude oil? December crude oil jumped up $6.62 to $70.53, the best close in over a week, helped by today's sharp break in the dollar. Tomorrow, the U.S. Department of Energy releases its weekly crude inventory report.
December natural gas closed up 38.1 cents at $7.219, the highest close in a month with winter approaching.
Currencies The Reserve Bank of Australia reduced its interest rate from 6.00% to 5.25%, lower than expected in an effort to keep the economy going. It was the third reduction this year. The December Australian dollar closed up 1.60 cents at 69.44.
The European Central Bank and the Bank of England both meet on Thursday and are also expected to reduce their interest rates.
Producer prices in the Euro area 15 were up 7.9% in September from a year ago, down from an 8.5% annual gain in August. The December euro gained 3.22 cents to $1.2931.
NCDEX CHANAJUN12 20 June 2012
contract was trading at
Rs 0 . What's your view on it?
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