Commodity News for the week ending July 8, 2011

Economic Reports & Statistics


Factory orders were higher in May, up 0.8 percent from April. The Commerce Department release was forecast to show a gain of 1.0 percent. (1) Wholesale inventories showed a gain of 1.8 percent for May, based in part on a decline of 0.2 percent for sales. (2) The Institute for Supply Management’s services index declined to 53.3 for the month of June, versus 54.6 in May and a forecasted reading of 53.7. (3) Thursday’s ADP employment data showed an addition of 157,000 jobs in the private sector in June. (4) The official data from the Labor Department showed that unemployment was up to 9.2 percent, and only 18,000 jobs were added versus forecasts for at least 90,000 new jobs. (4, 5)

The European Central Bank raised its benchmark interest rate by 0.25 percent. (6) China also raised its interest rates by 0.25 percent, the third increase this year. (7) Moody’s lowered their long-term bond rating for Portugal to Ba2 which is considered junk status. (8)
Energies

Weekly data from the Energy Information Administration showed crude supplies declining by 900,000 versus expectations for a 2.5 million barrel drop. Gasoline supplies were 600,000 barrels lower and 3.1 percent below the level seen at this time last year. Forecasts had shown expectations for a 500,000 barrel increase. Distillates were 200,000 barrels lower versus forecasts for a gain of 1.1 million barrels. (9)

Exxon Mobil Corp. is cleaning up following a spill from an oil pipeline in Montana. (10)


Grains & Oilseeds

Heavy rains contributed to a lowering of the wheat production forecast in Canada. The Farm Ministry reduced their forecast by 1.0m metric tons to 10.0m metric tons. (11) This week’s crop progress report from the USDA showed that conditions were marginally higher with corn in the good to excellent range gaining by one percent to 69 percent. (12) A compromise has been reached on a Senate deal which will result in the end to corn-based ethanol producer subsidies. (13) The Energy Department is initiating a plan to, “provide $105 million loan guarantee,” for a factory that looks to produce ethanol from corn waste. (14) Informa estimates released today show hard red winter wheat production levels at 788 million bushels, the lowest since 2006. (15)
Livestock

45,000 animals in Vietnam have been culled on a foot-and-mouth outbreak. (16) According to results of a study by a research firm, burger consumption is up since 2009. Their results show that around 50 percent of people have burgers once a week, versus 38 percent two years ago. (17)

Precious Metals

The United Kingdom’s Royal Mint reports that it has doubled its silver coin production to 324,421 ounces on an “upsurge in demand.” (18)

Softs & Exotics

Reports are showing smaller beans and plenty of moisture contributing to varied cocoa prices in Ivory Coast. (19) Exports from their San Pedro port are up to 83,594 metric tons versus 20,078 “a year earlier.” (20) A recent survey shows that more American consumers are foregoing their purchase of morning coffee in an effort to save money. (21) The current premium for Vietnam’s coffee beans fell by about 27 percent in the last week. (22) Unica has forecast for Brazil’s sugar production will be lower than last year’s by 1 million metric tons. (23) Drought continues in Texas, affecting corn and cotton crops. (24) India is increasing cotton exports and has issued permits to ship 170,000 tons. (25)

Information source here