Reports & Statistics
Retail sales for the month of September fell less than anticipated, coming in 1.5 percent lower versus the predication for a 2.1 percent decline.1 The National Retail Federation has issued a forecast which suggests that retailers will see holiday sales drop by one percent this year.2 The Consumer Price Index came in around analyst expectations at a 0.2 percent increase.3 Industrial production for September increased by 0.7 percent. Expectations were for a 0.2 percent increase.4
Crude oil inventories gained 400,000 barrels last week, and gasoline inventories fell by 5.2 million barrels. Participants in a Reuters poll had been expecting a 700,000 barrel gain in crude stocks and 800,000 barrel gain in gasoline. Distillate inventory fell by 1.1 million barrels versus expectations for a 100,000 barrel gain.5
Precious Metals
Stillwater Mining is reporting palladium production at over 300,000 ounces and platinum production at over 86,000 ounces for the first nine months of this year. Increased prices for PGM may ahave offset the loss of the supply agreement with GM.6 A dip in gold prices may have brought in buyers in India ahead of Dhanteras – a gold buying festival.7
Grains & Oilseeds
Weather forecasts for cold and wet weather in the Midwestern United States remained of focus for soybeans. USDA data showed that around 23 percent of the soybean crop had been harvested in eighteen of the producing states compared to 49 percent a year earlier.8 Warm weather may have boosted corn yield in Wisconsin.9 Globally, wet weather in Japan may have reduced wheat production by “as much as one third”, prompting an increase in imports to the island nation.10 Australia’s wheat crop may reach over 23 million tons.11
Coffee, Cocoa & Sugar
Main crop cocoa production in Ghana for 2009/10 is expected to top last year, according to the cocoa board. The season starts today. Ghana is hoping to “increase production to one million tons by 2012”.12 Ivory Coast cocoa farmers may be “withholding their beans to demand higher prices”, according to the president of Haut Sassandra Cooperatives Union.13 The cocoa crop in Indonesia may beat former forecasts, possibly reaching 580,000 metric tons.14 Sugar mills in Brazil plan to use 44 percent of this year’s cane to produce sugar and 56 percent for ethanol.15
Livestock
A meat packaging plant in Nebraska has recalled over 30,000 pounds of beef tongue on BSE risk material concerns following discovery that the tonsils were not removed completely.16 Compared to last year, beef and pork exports were down in August. Pork and pork related products were 22 percent lower in terms of volume while beef was 31 percent lower.17
Coming Up Next Week:
Monday: Crop Progress
Tuesday: Housing Starts, Permits, PPI
Wednesday: Energy Stocks
Thursday: Gas Storage
Friday: Existing Home Sales
Disclaimer: Futures and options trading involves substantial risk of loss and is not suitable for all investors. Past performance is not indicative of future results. Copyright 2009 LaSalle Futures Group
1 http://online.wsj.com/article/BT-CO-20091014-707121.html
2 http://www.nytimes.com/aponline/2009/10/06/business/AP-US-Retail-Holiday-Sales.html
3 http://news.briefing.com/GeneralContent/Investor/Active/ArticlePopup/ArticlePopup.aspx?ArticleId=SI20091015163336
4 http://online.wsj.com/article/SB125569814756889931.html
5 http://www.reuters.com/article/marketsNews/idUSN1530753220091015
6 http://www.mineweb.com/mineweb/view/mineweb/en/page35?oid=90862&sn=Detail
7 http://www.mineweb.com/mineweb/view/mineweb/en/page34?oid=90826&sn=Detail
8 http://www.bloomberg.com/apps/news?pid=20601086&sid=alfiLHSvXNkc
9 http://www.wisconsinagconnection.com/story-state.php?Id=1246&yr=2009
10 http://www.bloomberg.com/apps/news?pid=20601101&sid=a8IelEpkaXYA
11 http://www.reuters.com/article/nonCyclicalConsumerGoodsSector/idUSSYD53811820091014?sp=true
12 http://www.bloomberg.com/apps/news?pid=20601116&sid=aMxCsG7vvmCc
13 http://www.bloomberg.com/apps/news?pid=20601116&sid=aOEH8O_Q27fo
14 http://www.bloomberg.com/apps/news?pid=20601080&sid=a2rR9LFAEJuw
15 http://www.bloomberg.com/apps/news?pid=20601086&sid=aygStSLX.Lrk
16 http://www.google.com/hostednews/ap/article/ALeqM5i_B31WVNuL49Tnty9eWhZwjzBQQgD9BC8EC80
17 http://www.meatingplace.com/MembersOnly/webNews/details.aspx?item=14025
