Post by Paddy by Grace on Feb 10, 2010 12:34:15 GMT -7
www.google.com/hostednews/ap/article/ALeqM5hLdQzzkk_vLW3OsMLzbo-eZnRKbAD9DOTAP82
NEW YORK — Sugar and orange juice prices rose Tuesday after the Department of Agriculture's latest report predicted smaller supplies of the crops than previously estimated.
Grains were little changed after the report, which showed supplies for those commodities in line with expectations, said Frank Cholly Sr., a senior market strategist at Lind-Waldock.
The USDA cut its forecast for the 2009-2010 orange harvest by 3 percent from last month's estimate. Freezing temperatures in Florida in early January destroyed some of the crop.
With less supply of fresh fruit, the price of frozen orange juice concentrate for March rose $3.40, or 3.4 percent, to settle at $1.3765. OJ prices have been extremely volatile for most of the year because of uncertainty over how much of the crop was destroyed by the bad weather.
Florida produces more than 70 percent of the nation's entire orange crop. Analysts say it could still be months before it is certain how much of the crop was ruined.
Cholly said sugar, which has also been volatile in recent weeks, rose because of ongoing supply concerns. The price of March sugar rose 0.47 cents to 27.07 cents a pound. Sugar prices had fallen in recent days after hitting a 29-year high above 30 cents a pound last week.
The USDA said sugarcane production was down fractionally from its January forecast, but supply was unchanged. Pressure on supply is not likely to improve until April when Brazil's crop starts to get harvested.
Grain prices were little changed after the report showed no big surprises for supplies of those commodities, Cholly said. That is in stark contrast to last month's report, which shocked grain markets and sent corn, wheat and soybean tumbling. The USDA said last month that production was much higher that previously forecast.
Wheat for March delivery fell 1.75 cents to settle at $4.825 a bushel. Soybeans fell 5 cents to $9.245 a bushel, while corn rose 2.5 cents to $3.585 a bushel.
Meanwhile, metal and energy prices rose as investors jumped back into risky assets like commodities and stocks and the dollar weakened. Investors appetite for risk returned as hope grew that Greece would get outside help to alleviate its growing debt burden.
A cheaper dollar makes commodities more attractive for foreign investors. The ICE Futures US dollar index, which measures the dollar against six foreign currencies, fell 0.9 percent. April gold, which typically trades opposite the dollar, rose $11 to settle at $1,077.20 an ounce.
Metals with more industrial uses like silver, copper, platinum and palladium all rose. Silver for March delivery rose 35 cents to settle at $15.435 an ounce, while copper jumped 7.4 cents to $2.987 a pound.
April platinum gained $21.40 to settle at $1,502.40 an ounce, while March palladium rose $8.95 to $416.60 an ounce.
Energy prices were also helped by the weaker dollar and renewed interest in riskier asset classes. They also got a boost from the cold weather and snow blanketing most of the country. Another big snowstorm is barreling toward to the mid-Atlantic, which could drive up demand for heating oil.
March heating oil contracts rose 5.18 cents to settle at $1.9373 a gallon on the New York Mercantile Exchange. Benchmark crude for March delivery jumped $1.86 to settle at $73.75 a barrel. Gasoline added 3.5 cents at settle at $1.9290 a gallon.
NEW YORK — Sugar and orange juice prices rose Tuesday after the Department of Agriculture's latest report predicted smaller supplies of the crops than previously estimated.
Grains were little changed after the report, which showed supplies for those commodities in line with expectations, said Frank Cholly Sr., a senior market strategist at Lind-Waldock.
The USDA cut its forecast for the 2009-2010 orange harvest by 3 percent from last month's estimate. Freezing temperatures in Florida in early January destroyed some of the crop.
With less supply of fresh fruit, the price of frozen orange juice concentrate for March rose $3.40, or 3.4 percent, to settle at $1.3765. OJ prices have been extremely volatile for most of the year because of uncertainty over how much of the crop was destroyed by the bad weather.
Florida produces more than 70 percent of the nation's entire orange crop. Analysts say it could still be months before it is certain how much of the crop was ruined.
Cholly said sugar, which has also been volatile in recent weeks, rose because of ongoing supply concerns. The price of March sugar rose 0.47 cents to 27.07 cents a pound. Sugar prices had fallen in recent days after hitting a 29-year high above 30 cents a pound last week.
The USDA said sugarcane production was down fractionally from its January forecast, but supply was unchanged. Pressure on supply is not likely to improve until April when Brazil's crop starts to get harvested.
Grain prices were little changed after the report showed no big surprises for supplies of those commodities, Cholly said. That is in stark contrast to last month's report, which shocked grain markets and sent corn, wheat and soybean tumbling. The USDA said last month that production was much higher that previously forecast.
Wheat for March delivery fell 1.75 cents to settle at $4.825 a bushel. Soybeans fell 5 cents to $9.245 a bushel, while corn rose 2.5 cents to $3.585 a bushel.
Meanwhile, metal and energy prices rose as investors jumped back into risky assets like commodities and stocks and the dollar weakened. Investors appetite for risk returned as hope grew that Greece would get outside help to alleviate its growing debt burden.
A cheaper dollar makes commodities more attractive for foreign investors. The ICE Futures US dollar index, which measures the dollar against six foreign currencies, fell 0.9 percent. April gold, which typically trades opposite the dollar, rose $11 to settle at $1,077.20 an ounce.
Metals with more industrial uses like silver, copper, platinum and palladium all rose. Silver for March delivery rose 35 cents to settle at $15.435 an ounce, while copper jumped 7.4 cents to $2.987 a pound.
April platinum gained $21.40 to settle at $1,502.40 an ounce, while March palladium rose $8.95 to $416.60 an ounce.
Energy prices were also helped by the weaker dollar and renewed interest in riskier asset classes. They also got a boost from the cold weather and snow blanketing most of the country. Another big snowstorm is barreling toward to the mid-Atlantic, which could drive up demand for heating oil.
March heating oil contracts rose 5.18 cents to settle at $1.9373 a gallon on the New York Mercantile Exchange. Benchmark crude for March delivery jumped $1.86 to settle at $73.75 a barrel. Gasoline added 3.5 cents at settle at $1.9290 a gallon.