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Energy

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.