Commodities: The good news about last week? It's over

June 12, 2017
Commodities: The good news about last week? It's over

Stock exchange trading last week was brutal for pizza brands, levying stupefying drops in value over the trading week. There was some good news though in commodities trading for pizza restaurateurs, thanks to drops in cheese, gas and natural gas prices. 

Cheese
Cheese prices dropped back down to early May levels at the close of trading last week, finishing the week at $1.63, after hitting a high mark of $1.75 on May 31. 

Wheat:
Compared to last week, wheat was mostly higher.  A bullish technical signal was seen in winter wheat as contracts have established new four-week highs this week.  

An increase in commercial selling may be seen as another winter wheat harvest weekend is quickly approaching.  Final 2016-2017 marketing year total shipments for all wheat came in at 974 mb, with 69 mb of unshipped sales rolled to the 2017-2018 marketing year.  Weekly export sales of corn were 

Kansas City U.S. No. 1 Hard Red Winter, ordinary protein rail bid was 23 cents higher from $4.48 3/4-$5.63 3/4 per bushel.  Kansas City U.S. No. 2 Soft Red winter rail bid was not quoted.  
St. Louis truck US. No. 2 Soft Red Winter terminal bid was 24 to 63 cents higher from 4.57-4.64 per bushel. Minneapolis and Duluth U.S. No. 1 Dark Northern Spring, 14.0 to 14.5 percent protein rail, was 40 1/2 cents higher from $7.04 1/4-$7.24 1/4 per bushel. Portland U.S. Soft White wheat rail was 4 3/4 cents lower to 9 1/4 cents higher from $4.69 1/4-$4.94 1/4 per bushel.

U.S. gas and diesel fuel average morning prices 

                      Regular    Mid-Grade    Premium    Diesel
Current          $2.336        $2.628        $2.873        $2.493
Yesterday      $2.339        $2.628        $2.874        $2.496
Last week      $2.375        $2.657        $2.901        $2.510
Last month     $2.340        $2.622        $2.867        $2.505
Last year        $2.378        $2.622        $2.849        $2.369

Natural gas

Natural gas spot prices fell at most locations this report week (Wednesday, May 31 to Wednesday, June 7). The Henry Hub spot price fell from $3.00 per million British thermal units (MMBtu) last Wednesday to $2.99/MMBtu June 7. At the New York Mercantile Exchange (Nymex), the July 2017 contract price fell 5 cents, from $3.071/MMBtu last Wednesday to $3.020/MMBtu yesterday.

Net injections to working gas totaled 106 billion cubic feet (Bcf) for the week ending June 2. Working natural gas stocks are 2,631 Bcf, which is 11 percent less than the year-ago level and 10 percent more than the five-year (2012-16) average for this week.

The natural gas plant liquids composite price at Mont Belvieu, Texas, fell by 34 cents, averaging $5.83/MMBtu for the week ending June 7. Spot prices for natural gasoline, ethane, propane, butane, and isobutane all fell, by 4, 5, 7, 6 and 6 percent respectively.

According to Baker Hughes, for the week ending Friday, June 2, the natural gas rig count decreased by 3 to 182. The number of oil-directed rigs rose by 11 to 733. The total rig count increased by 8, and it now stands at 916.

Pizza company stocks
It was a lousy week for pizza stocks, with every brand taking a tumble in value, especially Domino's which did a freefall, dropping from $219.24 on Friday, June 2 at the close to $206.19 last Friday. Pizza Hut parent, Yum Brands also went down took a ride down the sliding board, falling 89 cents in value over the trading week, from $73.99 June 2 to $73.10 last Friday. 

Even Papa John's and Papa Murphy's got invited to the Friday evening sobfest with Papa John's falling from $81.80 to $79.41 and Papa Murphy's falling from $4.76 to $4.40 over the course of the trading week. 

 


Topics: Business Strategy and Profitability, Financial News


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