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Market Analysis: May 12, 2000

posted on May 12, 2000


THE NATION'S INVESTMENT COMMUNITY IS CERTAIN THE FEDERAL RESERVE WILL RAISE INTEREST RATES NEXT WEEK. THE HIKE WOULD BE THE SIXTH IN LESS THAN A YEAR.

BUT THERE IS EVIDENCE THE SERIES OF RATE HIKES MAY BE SLOWING THE ECONOMY TO WHAT THE FED VIEWS AS A SUSTAINABLE, THAT IS NON-INFLATIONARY, PACE OF EXPANSION.

LAST MONTH RETAIL SALES FELL FOR THE FIRST TIME SINCE 1998. AND THE APRIL PRODUCER PRICE INDEX, WHICH MEASURES INFLATION AT THE WHOLESALE LEVEL, DROPPED AS WELL.

THE GRAIN MARKETS FINISHED THE WEEK MIXED AS THE TRADE WATCHED FOR PRODUCTION CLUES IN USDA REPORTS. FOR THE WEEK, WHEAT PRICES GAINED NINE CENTS. CORN PRICES WERE DOWN A FRACTION TO MORE THAN FOUR CENTS.

SOYBEAN FUTURES WERE MIXED—TWO CENTS HIGHER TO MORE THAN THREE CENTS LOWER. SOYBEAN MEAL CLOSED THREE DOLLARS HIGHER PER TON.

COTTON FUTURES GAINED $3.70.

IN LIVESTOCK, FED CATTLE FUTURES CLOSED 70-CENTS LOWER. FEEDER CATTLE CLOSED 45-CENTS LOWER. THE LEAN HOG CONTRACT FINISHED THE WEEK $1.80 LOWER.

IN THE FINANCIALS, COMEX GOLD CLOSED $3.20 LOWER PER OUNCE. THE EURO GAINED NEARLY TWO POINTS. AND THE CRB INDEX FINISHED THE WEEK NEARLY FIVE POINTS HIGHER TO CLOSE AT 221.30.

Market Analysis: May 12, 2000

NOT AVAILABLE FOR THIS WEEK.

Tags: agriculture commodity prices markets news