Thursday, March 20, 2008

Commodities Mostly Lower, But Selling Seems To Be Waning

From Dow Jones via Cattle Network:

Commodities prices are mostly lower on continued selling as the dollar rises after a less-than-expected Federal Reserve Rate cut, but the widespread liquidation in hard assets seems to be slowing.

However, economic uncertainties and tighter bank credit lines for margins have funds continuing to reduce risk exposure in commodities, analysts said.

Chicago Board of Trade soy futures are firmly planted in negative territory, with soybeans plunging to their 50 cent lower daily trading limits again as they remain on the defensive from speculative led liquidation, analysts said.

At 12:20 EDT May soybeans are 50 cents lower at $12.07, May soyoil is 200 points lower at 54.40 cents per pound and May soymeal is $4.90 lower at $305.80 per short ton.

Similarly, gold and copper futures are down as funds and speculators extend their selling before a long weekend as the dollar rises and in continued response to a smaller-than-expected Fed interest rate cut.

Comex April gold is down $19.30 at $926 an ounce. Comex May copper is down 9.4 cents at $3.5395 a pound....MORE