Wheat Sharply Down; Soybeans Stage Moderate Comeback
Nov. 15, 1990
Undated (AP) _ Wheat prices fell sharply Thursday on the Chicago Board of Trade, plunging to near contract lows on mild weather conditions and a dearth of export business.
On other commodities markets, soybeans rose; corn fell; gold and platinum ended slightly higher; silver slipped; and meat and livestock futures were mixed.
Wheat prices settled 7 3/4 cents to 4 cents lower with the contract for delivery in December at $2.47 1/2 a bushel.
''Nothing. That's what traders are seeing in the way of export business in the grains,'' said Mickey Luth, an analyst for Shearson Lehman Hutton Inc. in Chicago.
Recent weather forecasts predicting above-normal temperatures in the regions where winter wheat is grown also pressured futures prices, Luth said.
Soybean prices on the Board of Trade staged a moderate comeback from previous session lows as speculation grew that a U.S.-European food aid package to the Soviet Union would come out of President Bush's upcoming trip to Europe.
Soybeans futures were boosted later in the day after rumors began circulating that the United States was preparing to offer subsidized soybean meal to Pakistan, said Dan Cekander, an analyst with Rodman & Renshaw Inc.
But the gains probably will be only short-term, Cekander said.
''We've had so many rumors of aid, and they never pan out,'' he said. ''I expect to see further liquidation because the market wants to see business - not hear rumors.''
Soybeans continued to face pressure from a government report issued last week that found larger stocks of the crop than had been expected. Corn suffered from a good harvest and little export activity.
Corn futures settled 2 3/4 cents to 1 1/4 cents lower with December at $2.22 a bushel; oats settled 1 3/4 cents to 2 3/4 cents higher with December at $1.09 3/4 a bushel; soybeans settled 1/2 cent to 4 1/4 cents higher with November at $5.58 1/2 a bushel.
Gold and platinum ended slightly higher on New York's Commodity Exchange on support from Japanese buying of platinum and an early rally in crude oil prices.
Gold settled $1.40 to $1.50 higher with December at $380.00 a troy ounce. Silver settled 7.1 cents to 5.7 cents lower with December at $4.117 an ounce. Platinum settled $1.30 to $1.80 higher with January at $415.70.
Energy futures on the New York Mercantile Exchange slid as traders continued to bet on peace in the Persian Gulf.
Light sweet crude settled 10 cents lower to 80 cents higher with December at $31.12 a barrel; heating oil settled .01 cent to 1.12 cents higher with December at 86.67 cents a gallon; unleaded gasoline settled .23 cent lower to .60 cent higher with December at 80.16 cents a gallon.
Cattle futures prices were mixed on the Chicago Mercantile Exchange, pressured by commission-house selling and profit-taking.
Hog futures suffered from another round of profit-taking after generally enjoying high prices because of lower-than-expected near-term stocks.
Live cattle settled .25 cent lower to .08 cent higher with December at 78.97 cents a pound; feeder cattle was .05 cent lower to .12 cent higher with November at 88.67 cents a pound; hogs were .55 cent lower to .22 cent higher with December at 53.35 cents a pound; frozen pork bellies were 2.00 cents to 1.92 cent lower with February at 70.12 cents a pound.