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 February 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

ThyssenKrupp Says Submarines Part of Growth Story

Germany's Thyssenkrupp sees its submarine business as making an important contribution to its growth targets, the head of its Industrial Solutions business area said on Tuesday.

Two Newbuilds Delivered to Star Bulk

Star Bulk Carriers Corp. took delivery on February 27 of M/V Honey Badger (ex HN NE 164) and M/V Wolverine (ex HN NE 165), two 61,000 dwt Ultramax bulk carriers

Brazil Truck Strike Diminishes

Some truck drivers in Brazil continued blocking roads on Tuesday, slowing grains deliveries to southern ports, even as adherence to the strike diminished and a

Finance

Shipping Industry Faces Shake Up

As global shipping grapples with its worst downturn in 30 years, private equity firms are unwinding massive bets made on the sector in a move set to accelerate

Gulf of Mexico Oil Production on the Rise

Because of the long timelines associated with Gulf of Mexico (GOM) projects, the recent downturn in oil prices is expected to have minimal direct impact on GOM crude oil production through 2016.

Vessel Sales: February 2015

Vessel sales for February 2015  - (as of March 1) as prepared by Shipping Intelligence, Inc., New York.   Date Reported - Vessel Name - DWT - Built -  - (Age)

News

Winter in US Northeast Takes a Toll on Ferries

With its black hull rumbling against a field of broken ice, the Warren Jr. slowly eased away from a dock in the Boston suburb of Hingham on Tuesday, aiming to clear

Shipping Industry Faces Shake Up

As global shipping grapples with its worst downturn in 30 years, private equity firms are unwinding massive bets made on the sector in a move set to accelerate

Gulf of Mexico Oil Production on the Rise

Because of the long timelines associated with Gulf of Mexico (GOM) projects, the recent downturn in oil prices is expected to have minimal direct impact on GOM crude oil production through 2016.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Navigation Port Authority Salvage Ship Electronics Shipbuilding / Vessel Construction Sonar 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: 0.1870 sec (5 req/sec)