CRB Rallies in First Half: Big Gains in Coffee, Hogs

Posted by Eric Haun
Monday, June 30, 2014

Commodities fell on Monday as investors squared their books after a big 10 percent rise in the first half of the year on rallies in gold, oil and big gains in arabica coffee and lean hogs.

"Commodities were oversold coming into the year, and you had some technical buying that followed, but now we're seeing a mix, with weather-related fundamentals driving things up like coffee and political troubles keeping a floor under oil and gold," said Walter "Bucky" Hellwig, who helps manage $17 billion at BB&T Wealth Management in Birmingham, Alabama.

The 19-commodity Thomson Reuters/Core Commodity CRB Index fell 1 percent on Monday but finished the first half up 10 percent, on track to its first positive year since 2010. It rose about 1 percent for the quarter and month.

Arabica coffee was headed for a 55 percent gain for the year so far, its biggest six-month gain in four years, after a drought in top coffee grower Brazil fueled crop worries.

Lean hog futures rose 55 percent from December after a deadly pig virus sharply reduced the U.S. hog herd. On Monday, the front-month hog contract in Chicago was up 1.3 percent, hovering above $1.32 a lb.

Oil and gold prices were range-bound for months until recent troubles in the Middle East and Crimean regions drove both higher. Oil supply worries propelled benchmark Brent crude to gains of 3 percent this month.

Gold rose for the day and notched its second quarterly gain after investors bought the precious metal as an insurance against growing geopolitical risks.

Copper eased for the session but posted a second monthly gain on investor concerns about tighter inventories amid signs of solid demand growth in China and an improving U.S. economy.

The most-active second-month position for arabica in New York settled at $1.710 a lb, up from its December close of $1.1295. For the session, it rose 1.5 percent.

The spot price of gold hit a 2-1/2 month high above $1,328 an ounce for the session. It was up 10 percent on the year; 3 percent on the quarter and 1 percent on the day.

In the oil markets, Brent traded near $112 a barrel, up 1.4 percent on the year and down 0.8 percent on the day after profit-taking diluted gains from a price run-up over the past two weeks related to Iraq.

U.S. crude slipped 0.4 percent on Monday but hovered at around $105, up 7 percent so far this year.

Heavy fighting in the north of Iraq has had little impact on the southern refineries that produce around 90 percent of the OPEC member's oil shipments. In Ukraine, a ceasefire has managed to stop the worst of killings in a separatist war.

Even so, analysts said fear of more trouble in the two regions would prevent oil prices from falling too much.

"We'll be well supported as long as there are issues in Iraq and Russia," said Carl Larry, CEO of consultancy Oil Outlooks in Houston, Texas.

(By Barani Krishnan; Editing by David Gregorio)

Maritime Reporter August 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Kounalakis Joins OW Bunker N. America

OW Bunker, a reseller and physical supplier of marine fuels, announced the appointment of Georgia Kounalakis to its physical supply operation in North America.

HII Appoints Brenton as Corporate Director

Huntington Ingalls Industries (HII) announced today that Capt. Kevin Brenton (U.S. Navy, Ret.) has joined the company as corporate director of customer affairs for submarine programs.

Louisiana to Get Natural Gas Liquefaction and Fueling Facility

Tenaska Bayou LNG expected to meet growing marine, transportation and oil and gas exploration and production demand on the Gulf Coast Tenaska NG Fuels, LLC and Waller Marine, Inc.

Finance

Norvestor to Become PG’s Largest Shareholder

Norvestor VI, L.P., a fund advised by Norvestor Equity AS, announced it has signed an agreement to invest in Ing Per Gjerdrum AS including its subsidiaries PG Hydraulics AS and PG Construction AS.

GasLog Closes First Option Vessels Dropdown

GasLog Ltd.  announced today the closing of the sale of two modern liquefied natural gas (“LNG”) carriers, the Methane Jane Elizabeth and Methane Rita Andrea,

Brent Holds Above $97, Eyes Worst Quarter Since 2012

Brent crude futures hovered above $97 a barrel on Tuesday, aided by firm U.S. and Chinese data, but the oil benchmark was on track for its deepest quarterly drop

News

Kounalakis Joins OW Bunker N. America

OW Bunker, a reseller and physical supplier of marine fuels, announced the appointment of Georgia Kounalakis to its physical supply operation in North America.

Louisiana to Get Natural Gas Liquefaction and Fueling Facility

Tenaska Bayou LNG expected to meet growing marine, transportation and oil and gas exploration and production demand on the Gulf Coast Tenaska NG Fuels, LLC and Waller Marine, Inc.

New Simulation Tool for Collision Reconstruction

BMT ARGOSS and BMT Surveys, subsidiaries of BMT Group Ltd, the international design, engineering and risk management consultancy, announced an innovative new service

 
 
Maritime Security Maritime Standards Naval Architecture Navigation Offshore Oil Pipelines Port Authority Ship Electronics Ship Simulators Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1558 sec (6 req/sec)