Reports & Statistics
Manufacturing activity as measured by the Institute for Supply Management’s (ISM) index showed a decline to 53.6 last month, lower than the month prior but still above 50. 1 Reuters’ poll results forecast that the ISM’s services index had grown in November to about 51.5.2 Instead, Thursday’s report showed that the index fell to 48.7.3 Pending home sales gained for the ninth month in a row. 4 Construction spending was flat in October.5 In employment, the Labor Department reported 11,000 jobs were cut in November, “far fewer than expected”, and unemployment fell to 10 percent. Reuters polls had pointed to anticipation for a payroll drop of 130,000 last month.6
In energies, the EIA reported crude oil stockpiles “gained 2.1 million barrels” versus forecasts for a 400,000 barrel build. Gasoline supplies added 4 million barrels compared to forecasts for a 1 million barrel build. Distillates fell by 1.2 million barrels compared to estimates for a 300,000 barrel drop.7
Precious Metals
A central bank official in China warned of the potential for an asset bubble where gold is concerned.8 Barrick Gold moved to eliminate its gold hedgebook.9 Standard & Poor’s Corp. launched a Gold Hedged Index.10 Goldman Sachs included a statement on the potential for $1,350 a troy ounce gold in its latest raw materials price forecasts.11
Grains & Oilseeds
Illinois remains behind in harvesting its corn crop, with as many as 557 million bushels remaining in fields.12 In Brazil, rains in the Center-West region could mean an increase in the South American nation’s soybean and corn crops next year. According to Conab forecasts, Brazil may produce up to 63.6 million tons of soybean and up to 52.2 million tons of corn next year.13 India may see wheat output to 80.6 million tons when harvested, based on sowing data as of November 26th.14 Pakistan may have an exportable surplus of wheat next year if farmers bump up production to 25 million tons.15
Coffee, Cocoa & Sugar
Parliament in Ghana is discussing the potential for cocoa producer prices to be raised in an effort to better reflect marker price, and to possibly curb smuggling. The government has already stated that the current cocoa price – the highest ever offered in their history – is the best they can afford.16 Fedecafe – Columbia’s National Federation of Coffee Growers – has lowered production forecasts to 8 million 60kg bags. Crops have been affected by the pest broca as well as El Nino weather patterns.17 Heavy rains in Brazil may be causing irregular flowering and affecting bud development on some coffee bushes.18 Also in Brazil, some sugar mills will likely continue harvesting through the first quarter of next year due to earlier rain delays.19 Mills in Maharashtra in India have stepped up sugar output by “5 percent in the first two months of the season”. Production reached 850,000 tons.20
Livestock
Russia has banned US pork from three plants following salmonella and antibiotics findings.21 The USDA confirmed that H1N1 was found in a turkey flock in Virginia.22
Coming Up Next Week:
Monday:
Consumer Credit
Wednesday:
Energy Stocks
Thursday:
Gas Storage, WASDE, Crop Production, Trade Balance
Friday:
Retail Sales
1 http://online.wsj.com/article/SB125967887037771295.html?mod=WSJ_hpp_LEFTWhatsNewsCollection
2 http://www.reuters.com/article/idUSN3036534520091203
3 http://www.marketwatch.com/story/stocks-pull-back-after-ism-services-index-falls-2009-12-03
4 http://online.wsj.com/article/SB125967887037771295.html?mod=WSJ_hpp_LEFTWhatsNewsCollection
5 http://www.marketwatch.com/story/us-construction-spending-flat-in-oct-2009-12-01
6 http://www.cnbc.com/id/34272339
7 http://uk.reuters.com/article/idUKN02585620091202
8 http://www.mineweb.com/mineweb/view/mineweb/en/page34?oid=93888&sn=Detail
9 http://www.mineweb.com/mineweb/view/mineweb/en/page34?oid=93869&sn=Detail
10 http://online.wsj.com/article/SB10001424052748704007804574573740671672448.html
11 http://www.ft.com/cms/s/0/7c6de4c8-e075-11de-8494-00144feab49a.html
12 http://www.google.com/hostednews/ap/article/ALeqM5gSRi5hjpsEj30NVLvt6QBo66YZHAD9CCF79G2
13 http://www.bloomberg.com/apps/news?pid=20601086&sid=aFB3u2D06ytU
14 http://in.reuters.com/article/domesticNews/idINDEL51040220091204?sp=true
15 http://www.bloomberg.com/apps/news?pid=20601091&sid=aBM8MvgY69Sg
16 http://allafrica.com/stories/200912030606.html
17 http://online.wsj.com/article/BT-CO-20091201-713733.html?mod=rss_Commodities
18 http://online.wsj.com/article/BT-CO-20091201-707133.html
19 http://www.bloomberg.com/apps/news?pid=20601086&sid=aEqGyFE6pGU4
20 http://www.bloomberg.com/apps/news?pid=20601091&sid=a0fkMTg8_bUA
21 http://www.meatingplace.com/MembersOnly/webNews/details.aspx?item=14700
22 http://www.meatingplace.com/MembersOnly/webNews/details.aspx?item=14720
