• It's Here!

    Etf Pro

    Get the big financial market moves right, bullish or bearish with Hedgeye’s ETF Pro.

  • It's Here


    Identify global risks and opportunities with essential macro intel using Hedgeye’s Market Edges.

This morning has brought some striking commodity market headlines.  Restaurant stocks have been rallying on the back of M&A and slightly better sales trends in the casual dining space, but we can’t lose sight of the fact that commodities are trending higher.

Corn could see more gains today, with nearby futures taking aim at the $5 level after making new 23-month highs yesterday.  Harvest delays and worries about falling yields are attracting more outside money willing to bet on the bullish trend.

Below is a selection of some interesting headlines in the commodity markets today:

GOLD:  Gold futures rose to a record $1,276.50 an ounce on demand for a haven against turmoil in the global economy and financial markets.

CORN:  Corn futures rose, extending a rally to the highest price since October 2008, on speculation that the U.S. crop will be smaller than the government forecast after hot, dry weather reduced yields.

COTTON:  Cotton extended a rally to the highest price in 15 years amid tightening global supplies.  India, the world’s second - biggest cotton grower, plans to delay registration of export contracts by two weeks until October 1.  The condition of the crop in China, the largest producer, has deteriorated compared with a year earlier after low temperatures and prolonged rains delayed planting.

SOYBEANS:  Soybeans rose for a second straight session on speculation that the dollar’s decline will increase demand for commodities as an alternative investment and hedge against inflation.

SUGAR:  Sugar futures surged to a six-month high on speculation that producers will struggle to meet demand after

unusual weather damaged crops and disrupted shipments.  Russia’s sugar-beet crop will total 2.65 million metric tons this year, the country’s Institute for Agricultural Markets Studies said September 9th, lowering its August 28th estimate by 5% because of the worst drought in half a century.

HOGS:  Hog futures had the biggest gain in almost four weeks as a rebound in U.S. pork prices may boost profit for meatpackers and encourage higher bids on animals for slaughter. Wholesale pork jumped 1.6% to 91.27 cents a pound yesterday.

COFFEE:  Coffee output in Brazil, the world’s biggest producer, may be hurt by the driest weather in four years as trees start flowering for next year’s crop, a growers group said. The dryness may pare the amount of beans that trees will yield next year.

The CRB Foodstuffs index has been a moonshot since the beginning of July.

COMMODITY HEADLINES - foodstuffs chart


Howard Penney

Managing Director