Reports & Statistics
FOMC Statement for September 23rd, 2009 – http://www.federalreserve.gov/newsevents/press/monetary/20090923a.htm
Sales of existing homes fell in August, dropping 2.7 percent to 5.1 million. Marketwatch analyst surveys had pointed to expectations for a slight gain.1 New home sales were 429,000 versus analyst expectations for 440,000.2
Crude oil inventories as reported by the EIA gained 2.8 million barrels versus expectations for a drop of 1.5 million barrels. Gasoline supplies were up by 5.4 million barrels and distillates gained 3 million barrels. Dow Jones surveys had suggested expectations for a 400,000 barrel gain in gasoline stocks and a 1.6 million barrel gain in distillate stocks. Natural gas was 1 billion cubic feet lower than Reuters polls of analysts suggested, coming in at 67 billion cubic feet gained. 3, 4
Top Commodity News
Precious Metals
Monday may be the start of gold sales from the International Monetary Fund (IMF) reserves. About 403 metric tons of gold may be sold.5 A news agency has reported that China may consider buying the IMF gold.6
Grains & Oilseeds
India may harvest record wheat crop due to a boost in reservoir water levels. According to a government official, output could be two million metric tons higher than last year. The rice harvest may also be higher.7 Farmers in India may also have planted addition acreage of soybeans, potentially boosting production next year.8 Rains may have also “boosted crop prospects” for Australia.9 Winter wheat planting in the Great Plains may be delayed by rains.10 The CFTC may implement a change in storage rates for a wheat contract.11
Coffee, Cocoa & Sugar
According to the International Cocoa Organization, Ivory Coast cocoa output will likely drop around 12 percent this year.12 The cocoa management committee head in that nation suggested that the crop will either be equal to “or lower than the 2008/09 harvest, due to disease and ageing plantations”.13 The 2009/10 crop harvest begins in October.14 Cocoa farmers in Nigeria have increased harvest pace as rains slowed.15 Flowering of coffee in Brazil’s main arabica growing region may be assisted by rains. Favorable flowering will be an important factor for estimates for the 2010/11 season.16 In Brazilian sugar news, rains in the Center South region may have reduced production by nearly 5 percent, and lowering cane output estimates to 530 million tons. According to Czarnikow Group Ltd., cane production was 505 million tons last year. 17
Livestock
Cattle on feed reported by the USDA came in at a 2.4 percent increase, beating analyst expectations for a 1.5 percent gain. The average weight was also higher.18 The USDA cold storage report showed a decline in beef stocks as well as a lower number of pork than analysts had anticipated.19
Coming Up Next Week:
Monday: Crop Progress
Tuesday: Consumer Confidence
Wednesday: Energy Stocks, GDP, Grain Stocks
Thursday: Gas Storage, ISM Manufacturing, Construction Spending, Pending Home Sales
Friday: Employment Situation
1 http://www.marketwatch.com/story/existing-home-sales-drop-27-to-510-million-2009-09-24
2 http://money.cnn.com/2009/09/25/markets/markets_newyork/index.htm?postversion=2009092510
3 http://www.reuters.com/article/marketsNews/idUSN2445099220090924
4 http://www.reuters.com/article/marketsNews/idUSN2445099220090924
5 http://www.mineweb.com/mineweb/view/mineweb/en/page34?oid=89504&sn=Detail
6 http://www.mineweb.com/mineweb/view/mineweb/en/page34?oid=89532&sn=Detail
7 http://www.bloomberg.com/apps/news?pid=20601091&sid=azY3MRBxBtIU
8 http://www.bloomberg.com/apps/news?pid=20601091&sid=aoX1YvBL8buM
9 http://www.bloomberg.com/apps/news?pid=20601081&sid=aKvx0WsdtBkk
10 http://www.google.com/hostednews/ap/article/ALeqM5gpN2E2keyGbowP8fZy3pKkqA3oTwD9AS7EJO2
11 http://www.reuters.com/article/governmentFilingsNews/idUSN2441282220090924?sp=true
12 http://www.bloomberg.com/apps/news?pid=20601087&sid=a4cVVtqgPRN8
13 http://www.forexyard.com/en/reuters_inner.tpl?action=2009-09-24T154847Z_01_LO199590_RTRIDST_0_COCOA-IVORYCOAST-CROP-INTERVIEW-UPDATE-2
14 http://wiadomosci.onet.pl/2049170,10,us_cocoa_price_near_30_year_top_despite_harvest,item.html
15 http://www.bloomberg.com/apps/news?pid=20601116&sid=a4LO5ebHWW9Y
16 http://online.wsj.com/article/BT-CO-20090921-708275.html
17 http://online.wsj.com/article/BT-CO-20090921-708275.html
18 http://www.meatingplace.com/MembersOnly/webNews/details.aspx?item=13800
19 http://www.meatingplace.com/MembersOnly/webNews/details.aspx?item=13824
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