Closing Commodity Comments For 2-15 12

 Metal Futures—A volatile day in precious metals trading today with April gold up 19 dollars on its high of the day before paring gains and closing around 1,729 up 11 dollars for the day. Silver futures in early trade rallied 60 cents before selling off and finishing up only 5 cents. Tensions with Iran early in the trading session sent the metals and the energies sharply higher on the fact that they had stopped exporting oil to 6 European countries; however Italy and 2 others have denied the oil rumor. Copper futures finished lower today in a lack luster trade finishing down 100 points at 380.00 a pound. Platinum futures were slightly higher in light trade closing around 1645 up 10 dollars an ounce.

 

Grain Futures—Same story in the grain market today with wheat, and corn lower and beans slightly higher. Wheat futures for March delivery were down another 10 cents closing around 6.25 a bushel continuing to move lower after a false breakout 2 weeks ago at 6.80 a bushel. Corn futures continued their bearish tone finishing lower by 7 cents to close around 6.26 a bushel. Soybean futures and soymeal are the only grains that are in a bull market and the beans continue to grind higher by 4 cents to close around 12.59 a bushel. Volatility is low in the soybean complex is low and you might be able to buy some cheap options and hope that volatility picks up and it should entering spring planting. Oat futures were unchanged for the trading day while rough rice was lower by 10 cents after the recent run up in prices closing around 14.30 a bushel.

 

Energy Futures—Crude oil futures for March delivery were higher by $1.00 today and trading as high as 102.50 before settling at 101.80 a barrel. Unleaded gasoline hit contract highs earlier in the session before settling around 3.00 a gallon up 150 points for the day. Heating oil futures were higher by 220 points to close around 3.18 a gallon up 2 cents for the day. In my opinion the energies will climb higher going into the summer driving season and I think eventually something is going to happen between Israel and Iran which could send prices sharply higher. Look at some July or August call options or even go out to December if you think prices are going higher.

 

Meat Futures—A quiet trading day in the meats today with feeder cattle trading  higher by around 50 points to close around 156.65 which is another all-time high close for feeder cattle prices and earlier in the day it traded as high as 157.35. Live cattle futures for April delivery were lower by 45 points closing around 128.80 just shy of contract highs which has been difficult to breakout above the 129-130 area. Lean hogs futures for April delivery were lower by 65 points after yesterday’s sharp 170 point rally pressured by profit taking closing around 89.00. I think the meats continue to climb higher as we enter spring and summer demand season. The charts have very good structure where they climb slowly with no price gaps or huge volatility.

 

Milk & Lumber Futures—Milk futures were steady today with the May contract closing higher by 13 points to close around 16.12. Milk has been very quiet this week compared to last week where the market saw big declines and gains during the week. In my opinion milk prices have bottomed short term and I think prices will move higher in a slow and choppy manner. Lumber futures were lower today by 500 points today closing around 261.50 which is about $15 from yesterday’s high. I think you look at buying lumber around 250-252 price area because I believe housing has bottomed and demand for lumber could increase pushing prices higher.

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