Crude boils hire

Jun 16, 2014


Crude oil prices exploded higher this week as the military conflict escalated in Iraq. Sunni militants have reportedly captured multiple major Iraqi cities and now threaten to take Baghdad, the capital. Meanwhile, as government troops were in full retreat, ethnic minority Kurdish troops took control of oil-rich Kirkuk, a city in northern Iraq. As the Iraqi government’s control collapsed, fears rose that instability could interrupt the flow of oil from the world’s sixth-largest oil exporter. In the wake of these fears, oil prices blew over $107 per barrel on Friday morning, the highest price in nearly nine months.

In the near-term, it looks as if there could be more conflict to come in Iraq. The Iraqi government is calling upon the US for military support, including airstrikes. Meanwhile, there are reports of Iranian troops crossing the Iran-Iraq border in support of the government, which could create an odd alliance for the United States and Iran who are both seeking to bolster the current Iraqi leadership.

Grains in the Drain

On Wednesday, the US Department of Agriculture confirmed the market’s expectation that this year’s crop of corn and soybeans will more than meet demand, leading to an abundance of grains this year. Without a major weather event, like the searing drought that hit the Midwest in 2012, USDA analysts expect that US grain stockpiles will swell this fall. As a result, corn and bean prices fell to multi-month lows, with December corn crumbling to $4.39 and November soybeans nose-diving to $12.04 per bushel.

Cattle Catapult to New Record

Cattle prices continued their meteoric rise this week, as the value of young cattle, known in the industry as “feeders” rose to a record high price of $2.08 per pound on Friday. Meanwhile, the price for market-ready or “fat” cattle stampeded to a four-month high, with August live cattle pushing up to $1.47 per pound on Friday. Some analysts warn that prices could continue climbing until there is a sharp drop-off in consumer demand for beef.

Cattle supplies are still relatively low due to the droughts of the past few years limiting overall herd size, which has left the market imbalanced, with too much demand chasing too little supply.


Opinions are solely the writer's. Walt Breitinger is a commodity futures broker in Valparaiso, Ind.  He can be reached at (800) 411-3888 or This is not a solicitation of any order to buy or sell any market.


Alex Breitinger


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Stop It

Yeah, we "FIXED" it. It shows.


Just think we have 2 more years of this idiot then 8 years of Billary.


I thought the SR's headline had something to do with "boils".


@ Wjones44: The House of Representatives is full of Republican idiots that make Barack look like a genius. How's that Eric Cantor thing doing? He wasn't smart enough to run his own campaign. That's probably due to the fact he was trying to figure out what bill to block next or grabbing some cash from his cronies. He is a demonstration of how to NOT be presidential material. If he is the best thing the Republicans have...I almost feel sorry for their party.


Harry Reid is a showcase for the Dumbocrats. Oh, let's not forget Pelosi. The idiot in chief had both the house and senate and did nothing. Now go back into your hole.


IRS, Benghazi, Fast and Furious, obozocare, VA, releasing 5 terrorists, border fiasco happening now... Anyone care to add anything else the idiot in chief has done?


My hope is that people vote. Hold their elected officials accountable. That is a challenge.


The problem is the voters are not educated with what's really going on. They see their "buddy" Barack reading from the teleprompter giving his rally speeches out on the campaign trail and that's all they know.