Global Futures Market Summary

Crude oil closed 5-percent lower today, with the October contract settling $5.75 lower at $109.71 a barrel. Speculation that Hurricane Gustav spared the oil rigs in the U.S. Gulf, with much of the production expected to be back on-line soon sent crude crashing lower today.

More than 70-percent of the workers on platforms and rigs in the Gulf were evacuated as Gustav approached. All of the area's 1.3 million barrels a day of oil and 7.06 billion cubic feet of gas, totaling 95-percent of total production, was shut down.

ExxonMobil said Tuesday that it "will begin its post-storm assessment process today to start to determine if and how any of our Gulf Coast oil and gas production facilities were impacted by the storm." Anglo-Dutch giant Royal Dutch Shell are planning to fly over the Gulf to survey storm damage, with the expectations of putting teams back to work on platforms Tuesday.

October Natural gas settled 68.2 cents lower at $7.258 per million British thermal units, October RBOB gasoline settled 12 cents lower at $2.7337 a gallon, October heating oil settled 11.8 cents lower at $3.0736 a gallon.

Grains

Wheat dropped the most in 3-weeks today, with the December contract settling 42 1/2 cents lower at $7.58 3/4 a bushel. Climbing production estimates, and strength in the U.S. dollar continues to send wheat lower.

Global wheat production is estimated to climb 9.9-percent by May 31, from 610.5 million tons the prior year, the U.S. Department of Agriculture said. World inventories could rise 18-percent to 136.2 million tons, the USDA said.

Soybeans closed nearly 2-percent lower today, with the November contract settling 25 1/2 cents lower at $12.98 1/2 per bushel. Falling energy prices, strength in the U.S. dollar, and weather forecasts for precipitation in Illinois, and Missouri later in the week was noted for the bearish tone in soy today.

Soy-oil, which is used to produce bio-diesel, fell 2.5-percent today, with the December contract shedding 137 points to settle at 52.83 cents per pound. Spill-over weakness from falling energy prices, and the rising greenback was noted for today’s action.

Corn closed 2.8-percent lower today, with the December contract settling 15 3/4 cents lower at $5.69 1/4 a bushel. Broad based commodity selling pressured corn lower.

Softs

Orange juice closed 5.3-percent lower today, with the November contract settling 5.95 cents lower at $1.0620 a pound. Speculation that Tropical Storm Hanna will miss Florida, the second largest producer of Oranges, was noted for the steep decline. Orange juice futures gained 5.6-percent over the past two weeks on hurricane concerns.

National Hurricane Center forecast maps are showing that Tropical Storm Hanna will probably head north to the South Carolina coast, avoiding the eastern half of Florida.

Cotton closed modestly higher today, with the December contract settling 40 points higher at 70.18 cents a pound. Cotton opened lower in sympathy of the collapsing CRB index, before speculation that excessive rains could harm the cotton crop sent cotton higher into the close.

October sugar settled 5 points lower at 12.71 cents a pound, December coffee settled 130 points lower at $1.4445 a pound, and December cocoa settled $220 lower at $2,664 a metric ton.

Meats

Lean hogs closed modestly higher today, with the December contract settling 40 points higher at 69.95 cents a pound. Hog futures trading at a discount to the cash market, and what some traders were calling oversold conditions sent lean hogs higher on the session. February pork bellies settled 20 points lower at 92.75 cents a pound.

Feeder cattle closed modestly higher today, with the September contract settling 62 points higher at 111.70 cents a pound. Lower grain prices were noted for the gains in feeder, while October live cattle shed 30 points to settle at 103.75 cents a pound.

Approximately 9.9 million cattle were on feed August 1, this is 4-percent less than a year earlier, the Department of Agriculture said. Feedlots bought the second-lowest number of cattle in July since 1996, the USDA said.

Metals

Gold closed 3-percent lower today, with the December contract settling $24.70 lower at $810.50 an ounce. Strength in the U.S. dollar, and falling energy prices reduces the appeal of precious metals as a hedge against inflation. Gold experienced its largest one day percentage drop since August 11.

Hedge funds and other large speculators reduced their net long gold futures position by 6-percent in the week ended Aug. 26, as per data by the U.S. Commodity Futures Trading Commission. Speculative long positions still outnumbered short positions by 105,279 contracts.

Copper closed nearly 4-percent lower today, with the December contract settling 12 cents lower at $3.27 a pound. Speculation that the global economy will continue to slow, reducing demand for copper which is used in construction continues to send copper lower.

December silver settled 56.2 cents lower at $13.145 an ounce, October platinum settled $86.30 lower at $1,403.50 an ounce, and December palladium settled $13.75 lower at $293.05 an ounce.

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