By Barani Krishnan
NEW YORK, May 6 (Reuters) - The bull run in U.S. energy
markets showed little signs of slowing on Tuesday, with crude,
gasoline and heating oil all hitting record highs before ending
off their peaks, fueling a rally in other commodities too.
U.S. corn futures hit new peaks as well, leading wheat to a
higher close. [GRA/] Precious metals such as gold and silver
rose but modestly. [GOL/] Copper bucked the trend with a lower
close after Monday's record high in New York. [MET/L]
"I think oil is just pulling everything higher and because
of that, all these commodities have turned around again," said
Edward Meir, energy and metals analyst at commodities brokerage
MF Global in New York.
Another positive factor was the dollar's weakening for a
second straight day after being up in two previous sessions on
speculation that the U.S. Federal Reserve may be ready to stop
interest rate cuts which began in September. [USD/]
"The dollar was giving the bears some hope last week when
it rallied. That seems to have stalled and we seem to be back
to the original kind of trading strategy, which is go short the
dollar and long the commodities," Meir said.
Crude <CLc1> on the New York Mercantile Exchange, or NYMEX,
settled up $1.87 at $121.84 a barrel after touching a record
$122.73, extending a rally that has doubled prices over the
past year. [O/R]
Analysts attributed the run-up mainly to Iran's refusal to
accept inspections of its nuclear program which the West fears
could be linked to weapons. Iran is also the world's fourth
largest oil exporter. [ID:nL05474341]
Nigerian disruptions from militant attacks and a strike
have also underpinned prices since late April, along with the
weaker dollar and growing demand from emerging markets like
China and India.
The mounting supply problems and strong demand prompted
Goldman Sachs to forecast oil could reach $200 a barrel within
the next two years.[ID:nL06914488]
NYMEX heating oil for June ended up 4.70 cents, or 1.42
percent, at $3.3535 after an intraday record of $3.3712.
RBOB gasoline for June, settled up 5.26 cents, or 1.72
percent, at $3.1055 on NYMEX, after an all-time high of
$3.1260.
U.S. corn surged 3 percent as the pace of seeding in the
United States, the world's top producer and exporter of the
grain used in feed and ethanol, was the slowest in a decade.
Spring rains across wide swaths of the Midwest grain belt,
which is home to the bulk of corn grown in the United States,
have delayed planting. As a rule of thumb, farmers need to seed
the crop by May 15 to avoid yield loss.
Benchmark corn for May delivery <CK8> on the Chicago Board
of Trade closed up 12-3/4 cents at $5.94-3/4 per bushel. The
July <CN9> 2009 contract reached a record high of $6.60-3/4 per
bushel during Tuesday's session before ending up 10 cents at
$6.49.
CBOT wheat for May <WK8> closed up 13-1/2 cents at $8.06
per bushel.
The Reuters-Jefferies CRB index <.CRB>, which tracks 19
commodity futures, was up 1.13 percent at 418.54.
(Editing by Marguerita Choy)
((barani.krishnan@thomsonreuters.com; +1 646 223 6192; Reuters
Messaging: barani.krishnan.reuters.com@reuters.net))
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SPEED GUIDES COMMODS REUTERS
Keywords: MARKETS COMMODITIES
NEW YORK, May 6 (Reuters) - The New York Mercantile Exchange said on Tuesday it will increase margins for its crude oil and related futures contracts, beginning at the close of business on Wednesday.
Margins for the crude oil, crude oil calendar swap, and crude oil financial futures contracts will go up to $7,250 from $6,500 for clearing members, to $7,975 from $7,150 for members and to $9,788 from $8,775 for customers, NYMEX said in a release.
Margins for the NYMEX miNY crude oil futures contract will rise to $3,625 from $3,250 for clearing members, to $3,988 from $3,575 for members and to $4,894 from $4,388 for customers.
Margins for the NYMEX MACI index futures contract will increase to $1,450 from $1,300 for clearing members, to $1,595 from $1,430 for members and to $1,958 from $1,755 for customers. (Reporting by Gene Ramos; Editing by David Gregorio) ((Email: gene.ramos@thomsonreuters.com; + 1 646 223 6054; Reuters Messaging: gene.ramos.reuters.com@reuters.net)) Keywords: MARKETS NYMEX CRUDE/MARGINS
CHICAGO, May 6 (Reuters) - U.S. rough rice futures on the Chicago Board of Trade ended firm Tuesday on follow-through technical buying after a volatile session, traders said.
* Thinly traded May <RRK8>, now in delivery, settled 10 cents up at $20.82 per hundredweight. More actively traded July <RRN8> closed 10 cents higher at $21.10 -- after soaring 45 cents earlier in the session to $21.45.
* Prices continue to recover from last week's technical sell-off when prices slid $4 from its record high above $25. But the market was still viewed technically weak, despite the higher trend the past three days, traders said.
* Weaker Thai cash prices were bearish. But there were mixed views among Chicago traders whether the Philippines' recent moves in the cash rice market were bullish or bearish.
* The Philippines, the world's biggest importer of rice, on Monday scrapped a tender for 675,000 tonnes after receiving just one bid, then it set an auction for 163,000 tonnes for the private sector for May 9. [ID:nSP167063]
* An improving planting outlook for the U.S. rice belt weighed on prices.
* Rice planting is lagging due to wet spring in the top rice state of Arkansas.
* USDA reported late Monday that 61 percent of the rice was seeded, vs the seasonal average of 71 percent.
* Overnight, there were 19 May deliveries which were met by a strong stopper. An Iowa Grain customer took all.
For detailed report click on [GRA/]. (Reporting by Christine Stebbins) ((christine.stebbins@thomsonreuters.com; +1 312 408 8720; Reuters Messaging:christine.stebbins.reuters.com@reuters.net)) Keywords: MARKETS CBOT RICE
By Jerry Bieszk
CHICAGO, May 6 (Reuters) - U.S. hog futures continued their strong advance on Tuesday as higher pork prices in the cash market strengthened talk of strong exports.
"The export business is still good and I think that's one of the contributing factors. There sure has been terrific demand in there," said Bruce Johnson, independent livestock trader. "The hog market keeps coming in higher so is must be good demand."
A slipping U.S. dollar added to ideas of increased exports, especially after the record pace of pork exports for the past nine months. The calculated pork carcass cutout value for Monday was put at $76.21 per cwt by the USDA, the highest level since late July.
June lean hogs <2LHM8> closed up 1.550 cents at 74.750 cents per lb and July <2LHN8> was up 0.675 cent at 76.025 cents. June moved above the 100-day moving average to post a one-week high and rose above all its averages to also set a one-week high.
Although strong pork product prices provided support to cash hogs, part of the strength in live markets was coming from a slow down in hog marketings due to farmers planting corn.
But some traders felt the cash pork product market may be starting to top out. Cash loins were called weak by the USDA early on Tuesday and pork trade was very slow.
Any downturn in the pork cutout value after reaching a nine month high could bring in fresh selling pressure, they said.
"It's my opinion that we are real close to a turn in this pork cutout value," said Dennis Smith, broker with Archer Financial. "Every time you take the cutout up another notch, trade slows down a little bit more."
Pork belly futures also sped higher in reaction to the higher hog futures and to talk that there may be a strong stopper for deliveries. CME reported 26 deliveries against the May contract on Tuesday.
USDA put Monday's average cash belly price unchanged at $84.98 per cwt, while on Tuesday USDA's carlot report quoted some pork bellies $2 higher.
May pork bellies <2PBK8> finished up 1.950 cent at 75.800 cents per lb and July <2PBN8> was up 1.650 at 76.500 cents.
Live cattle futures closed higher as firm beef prices and a sharply higher hog market fueled active short covering. The market lacked follow-through selling on the early break despite some traders looking for the cash beef market to top out soon.
June live cattle <2LCM8> ended up 0.625 cent at 91.825 cents per lb and August <2LCQ8> was up 0.350 cent at 97.825. June posted a three-week low early but held the 40-day moving average and rallied to close above the 20-day average.
Traders had been expecting beef prices to trend lower after recent strong gains, especially with rising oil prices cutting into spendable income. But beef has not lost much value.
Early on Tuesday, USDA quoted choice beef down 28 cents from Monday at $155.18 per cwt, but Monday's quote was the highest since May 25, 2007. The select cutout on Tuesday was up 74 cents at $152.71.
Back months held sharp premiums on speculation for much higher cash cattle prices later.
"We will have a goodly amount of cattle for the next six to eight weeks and as long as the packer is making money and he keeps killing the cattle I think we will get through them and probably have a pretty robust fall and first quarter of next year," said Johnson.
Feeder cattle futures closed mostly higher as higher live cattle futures prompted local short covering. Firm cash feeder prices this week were also supportive.
May feeder cattle <2FCK8> closed up 0.300 at 105.550 cents per lb and August <2FCQ8> was off 0.050 at 108.200. (Reporting by Jerry Bieszk; Editing by Marguerita Choy)
((jerry.bieszk@thomsonreuters.com; 312-408-8725; Reuters Messaging: jerry.bieszk.reuters.com@reuters.net)) Keywords: MARKETS LIVESTOCK/
KIEV, May 6 (Reuters) - Ukrainian month-on-month inflation slowed to 3.1 percent in April compared to 3.8 percent in March, the State Statistics Committee said on Tuesday. ((Kiev bureau; +380-44-244-9150; RM: sabina.zawadzki.reuters.com@reuters.net)) Keywords: UKRAINE INFLATION/
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