FUTURES Commodities advice

Press, 11 June 1987, Page 28

FUTURES Commodities advice

Investors should be looking at buying commodity futures now, said the manager of Buttle and Company Futures, Mr Peter Jones, yesterday. He said that he expected to see big price rises in commodities before the end of the year, driven on by inflation expectations. The latest indication was that live cattle prices had broken out of a resistance level held since 1981-82. The price offered had risen to 70c a lb, and some American analysts were expecting SUSI a lb by the end of the year. What this meant was that more farmers would be increasing their herds, which meant that more feed was required. U.S. Government spending was expected to grow, particularly for defence projects, and this would help fuel inflation. Commodities prices would also be influenced by the Russians purchasing more grain because of the Chernobyl nuclear power station disaster last year, and also because, for the first time in five years, yields in soya beans and grains were expected to be lower in the U.S. grainbelt, he said.'

N.Z. market Traders in the Barclays share price index futures contract will have to continue to wait for the sharemarket to take its expected fall. The Barclays industrial index rose a further 21 points to 3081, leaving the futures contract at a discount of 15 points. It is the 10th consecu-

tive session that the physical index has improved, and the discount indicates that traders are still looking for the predicted downslide. A futures trader said yesterday that all the major contracts were showing signs of uncertainty. The Treasury bill moves by the Reserve Bank late last week and early this week had stopped the bullish sentiment among the two interest rate contracts — Government stock (GSK) and bank accepted bills (BAB). The GSK contract was sold off yesterday although the move was not significant The market was a little nervous about the latest stock tender, with the blds for the $250 million going in today and the results coming out tomorrow, the trader said. The BAB contract opened weaker but was better bid late in the day to finish five points above Tuesday’s close. It was the final day of trading for June GSK, BAB, and U.S. dollar contracts. In Sydney, the spot June share price index futures closed 18.5 points higher at 1822.0, a bullish 33.0 point premium over the physical.

Details of yesterday’s trading were: SUS CONTRACTS Mth Open H/L Last Vol Jun. 1.7020 7032/7000 7032 147 Jly 1.7190 7250/7190 7215 134 Sep. 1.7500 7540/7500 7540 30 Contracts traded: 311. Open positions at June 9: Jun 1630. Jly 76, Sep 70, total 1776 (up 29). <

COMMERCIAL BILLS Mth Open H/L Last Vol Jun. 8000 026/000 026 109 Contracts traded: 109. Open positions at June 9: Jun 109, Sep 43, Dec 40, Mar 39, Jun 10, total 241 (down 9). GOVERNMENT STOCK Mth Open H/L Last Vol Jun. 8374 378/374 377 74 Sep. 8436 438/428 430 695 Contracts traded: 769. Open positions at June 9: Jun 3352, Sep 2513, Dec 101, total 5966 (down 1684). WOOL Mth Open H/L Last Vol Jan 88 677 677/676 677 3 Mar. 695 695/695 695 10 May 702 702/702 702 1 Contracts traded: 14. Open positions at June 9: Aug 132, Oct 94, Dec 126, Jan 339, Mar 335, May 171, Aug 25, total 1222 (down 9). M-DAY BANK BILLS Mth Open H/L Last Vol Jun. 8010 035/010 035 41 Jly 8020 085/020 045 107 Aug 8025 100/025 100 21 Dec 8225 225/225 225 3 Contracts traded: 172. Open positions at June 9: Jun 1019, Jly 241, Aug 34, Sep 455, Dec 101, Mar 109, Jun 50, Sep 50, Dec 50, Mar 10, total 2119 (down 11). SYDNEY ALL-ORDS (half-points omitted) Prev. Mth close H/L Last Vol

Jun. 1803 1823/15 1822 1509 Sep. 1836 1860/49 1858 425 Contracts traded: 1934. Open positions at June 9: 16,804. BARCLAY’S SHARE INDEX Mth Open H/L Last Vol Jun. 3060 090/052 066 730 Sep. 3201 201/195 195 11 Contracts traded: 741. Open positions at June 9: Jun 1329, Sep 2, Dec 82, total 1413 (down 128).