New Record on Oil Price and Its Impact on Other Commodities Market

Both Light and Bret Oil Crude leapt for new $142 per barrel record yesterday, the impact has been attaching food sector (commodity market). Corn and Soybean were attacked and leaping to new record on Friday trading in Chicago Board of Trade (CBOT), but closed at lower price. Heavy rain in Midwest and close to update agriculture report announced next week, Market took profit taking for necessary actions.

Friday morning opening session, those commodities leapt significantly in last 2 days and the main reason is new record for oil crude.

December Shipping for Corn created its new record high $ 7.96 per bushel, but declined to $7.87 USD when closing time. November Shipping for Soybean also leapt new record high around $15.77 USD per bushel and declined on $15.59 USD in closing time. Beside Corn and Soybean, Wheat also declined on Friday, down to $9.12 per bushel for September Shipping.

Analyst from DTN, Elaine Kub said that Nebraska to predict that Federal Agriculture Department will push the market velocity in next week. According to Elaine; market needs slowly price fluctuation and step by step to see the complexity demand. “As you see, brokers decide to get profit taking and they do it carefully, Kub said.”

Troubling in AS Financial Market also impacted CBOT market, especially Rice and Oil. Dow Jones declined significantly around 400 point in recent two days to lowest level since November 2006. Light Sweet Oil touched $142.99 per barrel and closed at $140.21 per barrel in New York Mercantile Market or higher two points than previously.

NYMEX (New York Mercantile Exchange), Metal commodities also moved; Gold for August shipping raised $16.20 USD to $931.30 USD per troy ounce. Silver for June Shipping raised 49.5 cent to $17.62 USD per ounce.

Data processing from Bloomberg, Antara, Marketiva Live Desk, Reuters