Middle East tension boosts gas prices

Register
Jun 14, 2013

Here is this week’s edition of Futures File, our weekly commodities wrap-up:

Corn grinding lower

Despite the poor weather conditions earlier this spring that delayed planting across much of the Midwest, America’s farmers likely planted a record corn crop, according to USDA estimates. A report released Wednesday projected a total corn crop of over 14 billion bushels, a jump from the previous record of 13.1 billion. The prospect such large production pushed prices lower this week, with December corn falling nearly 30 cents per bushel (-5.4%) to $5.30, the lowest price in three weeks.

As of the beginning of the week, over 25 million acres of corn and soybeans were left unplanted, leaving much uncertainty in the current USDA forecasts. Another report detailing planted acreage will be released at the end of June, giving the markets further insight into this year’s crop. Other analysts are still concerned that late-planted crops could have problems as they develop, reducing yields beneath current USDA estimates. For example, some note that the plants’ pollination period will be shifted later into July, when hot and dry conditions can interrupt pollination.

As of midday Friday corn for delivery in December (after this fall’s harvest) was worth $5.32 and November soybeans were worth $12.95 per bushel.

Petroleum jumps on mideast unease

Crude oil, gasoline and diesel fuel prices were all higher this week, rallying on increasing tensions in the Middle East. Protests in Turkey, upcoming elections in Iran, and the announcement that the United States will soon begin arming rebels in Syria all threaten to add to uncertainty to that region. Although the United States is becoming less dependent on foreign oil as domestic production increases, crude oil remains an internationally traded commodity, vulnerable to headlines from across the globe.

Meanwhile, strong economic data from the United States inspired optimism that the US economy would continue to gain strength, keeping demand for liquid fuels high. By midday Friday, crude oil had experienced a weekly rise of $2.23 (+2.3%) to $98.25 per barrel, the highest price in nine months. At the same time, gasoline gained two cents per gallon (+0.7%) and diesel futures spurted 7.1 cents (2.5%) higher.

Comments

Contango

@ WH:

"Are you Canadian? You sound like one the way you whine all the time." :-7

JACKEL

Yea.it's so bad The Oil Companies are laying off Congressman !

kURTje

Woody he loves the Koch brothers. They are his heroes.

JudgeMeNot

Obama says, "I don’t take money from oil companies."

Obama has accepted more than $213,000 from individuals who work for companies in the oil and gas industry and their spouses. Sen. Hillary Clinton, who has received more than $306,000 in donations from people tied to the industry.

Obama received $884,000 from the oil and gas industry during the 2008 campaign.

Oil giant Exxon Mobil plans to donate $250,000 to help foot the bill for President Barack Obama’s second inauguration.

In 2008, Exxon Mobil donated $117,946 to Obama.

Chevron and BP also ponied up big bucks for Obama, giving $77,875 and $71,051, respectively.

Fact: Obama gets more from the major companies Democrats like to demonize on a daily basis.

shucks

.

2cents

Let's put it in our trucks at the same cost! I was at the Mid America Truck Show and all major players now have CNG trucks.

http://www.youtube.com/watch?v=7...

Contango

Re: "CNG trucks."

Wondering about the operating cost trade-offs in regards to tank weight and reduced BTU efficiency, plus the number of currently available fueling hook-ups.

2cents

My questions as well, the data looks good and with high pressure liquid CNG being used they show good operating performance. Cummins Westport is the major player as far as engine technology and I am working with them developing products we manufacture to interface with the CNG platform.

Downfall is the filling stations, but I see this changing soon.

http://www.afdc.energy.gov/fuels...

http://www.cumminswestport.com/n...

Contango

Re: "I am working with them developing products we manufacture,"

Best wishes for much success!

God bless the entrepreneurs!

BTW: I saw an article in the WSJ about the EEOC suing Dollar Gen'l & BMW.

"The EEOC says that screening for felonies is discriminatory.":

http://online.wsj.com/article/SB...

I've often wondered why anyone in their 'right mind' would want to be in business in the U.S. with this kind of stifling bureaucratic lunacy.

2cents

"The EEOC says that screening for felonies is discriminatory."

I guess I will not be hiring any of the current administration when they leave then : )

Thanks for the comments, it is difficult, the glass ceiling exists in ways other than for women my friend, all of the past 30 years!

whocares

What happened to the oil out of Alaska. Wasn't it suppose to come to the lower 48 States. Its time for the EPA to allow drilling and building of more refineries.

Pages