Nat gas heats up

Reduced U.S. output, increased demand for liquefied natural gas (LNG) from foreign customers and colder temps in the northeast U.S. combined to send natural gas futures to the highest level since July 1. LNG supplies have been reduced by plant outages and construction slowdowns due to labor shortages. Two weeks of substantial drawdowns in gas inventory stimulated the buying.

Bird flu raises concern

Major news outlets are reporting the first severe human bird flu case in the U.S. A 65-year-old man was hospitalized with a case of H5N1 bird flu according to the U.S. Centers for Disease Control and Prevention. The person was said to have been exposed to dead and infected birds on his property. Sixty-one previous human cases, which have been mild in nature, have been associated with sick farm poultry and dairy cows. California’s governor has issued a state of emergency as the disease has spread through dairy cattle in that state. The disease affects not only poultry prices but also pork and beef prices as consumers change their food choices.

Coffee waking up to higher prices?

Experts are predicting that coffee prices will continue to rise going forward. Natural disasters like the droughts in Brazil and the typhoon in Vietnam have disrupted crops. Continual climate change and weather pattern changes make growth and harvesting more difficult. Increased demand in emerging markets like Asia will add to price increases worldwide. Regulations, such as the EU’s effort, require companies to prove that coffee growth is deforestation free in order to sell the product in Europe. Also, labor costs are up and continued supply chain issues like container shortages add to costs. All of these issues lead some to say that prices will rise for several years.

CME midday prices: Price per bushel: January soybeans, $9.76; March corn, $4.47; March wheat, $5.35. February livestock per 100 pounds: Cattle, $188.00; hogs, $85.60. Metals per troy ounce: February gold, $2,647; March silver, $30.19. March copper per pound: $4.10. February crude oil per barrel: $69.50. January natural gas $3.77 per 10,000 MMBTU. March coffee $3.25 per pound. 

Pinion Futures LLC (PF), a CFTC registered Introducing Broker and NFA Member (NFA #0284447) is a fully owned subsidiary of Pinion Risk Management LLC. Information contained herein is believed to be reliable, but cannot be guaranteed as to its accuracy or completeness. Past performance is no guarantee of future results or profitability. Futures and options trading involve substantial risk of loss and is not suitable for all investors. Clients may lose more than their initial investment. All information, communications, publications, and reports, including this specific material, used and distributed by PF shall be construed as a solicitation for entering into a derivatives transaction. PF does not distribute research reports, employ research analysts, or maintain a research department as defined in CFTC Regulation 1.71.