Latest news with #futuresmarket
Bloomberg
22-07-2025
- Business
- Bloomberg
Japan's power trading set to surge with end of key deal
The shakeup is already driving hedging activity in the futures market, as traders position for potential changes in supply and demand. Trading volumes on the European Energy Exchange AG — the largest bourse for Japanese power derivatives — more than doubled in June from the same month last year. 'We have seen very active hedging trades in the EEX Japan Power futures market to cover the risk exposure from those physical positions for the same period,' said Bob Takai, chief executive officer of EEX Japan. While traders usually hedge summer and winter 2026 contracts at the end of the year, volumes for those seasonal products are already picking up, he added. Still, some traders remain cautious as it's still unclear how much electricity the major retailers will actually procure. Jera, a 50-50 venture between Tepco and Chubu, was founded in 2015 to combine power generation assets and overseas fuel procurement. A spokesperson for TEPCO Energy Partner, the utility's retail arm, declined to comment on specific plans for power procurement. The company will make use of the market and various products for an optimal procurement method and balance, the spokesperson said. Chubu Electric's retail arm will continue to build an appropriate procurement portfolio taking into account factors like economics and stable supply of electricity, a spokesperson said, declining to comment on the details of its contract with Jera. Jera will offer wholesale electricity on equal terms to all retailers, including those at Tepco and Chubu, which must participate in public and brokered sales like any other firm, a spokesperson said. The company plans to expand wholesale offerings to a wider range of retailers from fiscal year 2026, the spokesperson added. Demand has become increasingly difficult to forecast amid extreme weather and natural disasters, highlighting the growing importance of hedging strategies. The recent heat wave pushed day-ahead spot prices to a four-month high on Sunday, making weather a major driver of short-term volatility. In response, EEX is preparing to launch a daily futures product for the Kansai area, giving traders more tools to hedge against regional price swings.
Yahoo
18-07-2025
- Sport
- Yahoo
Alabama is 'one of the tougher teams to handicap'
Trysta Krick and Vaughn Dalzell discuss the futures market for Alabama in 2025, including the Crimson Tide's odds make the College Football Playoff and win more than nine games.
Yahoo
17-07-2025
- Business
- Yahoo
Can Cattle Futures Sustain the Rally as the Offseason Approaches?
I concluded my Q2 Barchart report on the animal protein sector with the following: I expect a continuation of elevated beef and pork prices. Significant corrections over the coming months could be buying opportunities. Given the volatility in animal protein futures, buyers should leave plenty of room to add on declines, as it is virtually impossible to pick bottoms in the meats or any other commodity markets. More News from Barchart Bears Have the Advantage as Arabica Coffee Falls. Here Are the Levels to Watch Before You Sell. Arabica Coffee Resumes Climb on Dry Brazil Weather Cocoa Prices Fall on Expectations for Weak Q2 Demand Figures Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! Nearby live cattle futures settled Q2 at $2.13875, with the feeders at $3.10675 per pound. In mid-July 2025, the futures for fat and feeder cattle were higher than the levels on June 30, 2025. Live cattle reach a new record high The bullish trend in the live cattle futures market remains firmly intact in July 2025. The monthly chart, dating back to the early 1970s, shows that the price rose to a new high of $2.24400 per pound in July 2025. After falling to a 76.60 cents per pound low as the global pandemic gripped markets across all asset classes, cattle futures have nearly tripled at the most recent high and were trading above the $2.20 per pound level in mid-July 2025. New highs in the feeders in July- Five consecutive months of new highs The feeders have outperformed the fat cattle, reaching new highs of over $3 for the first time in Q3 and rising to a fresh record peak in July 2025. The monthly continuous futures chart illustrates the bullish price action that has driven the CME feeder cattle futures contract to its most recent high of $3.26875 per pound. At over $3.25 per pound in mid-July, the feeders remain in a bullish trend. The feeders are now over triple the price they were at the 2020 low. Fundamentals favor the upside U.S. consumers continue to enjoy beef, despite the high prices, keeping the demand side of cattle's fundamental equation steady to higher. Meanwhile, the pandemic caused a decline in herds, with the number of beef cattle 27.8 million in 2025, at the lowest level since the 1960s. While feed prices have declined, the drought in the U.S. that started in 2021 caused many cattle ranchers to sell their beef cows, resulting in a reduction of the herd. Another factor that keeps the bid under the cattle market is the Trump administration's tariffs. Brazil is the leading beef-exporting country, followed by Australia in second place, and the U.S. in third. The chart shows that the United States was the second-leading beef importer, behind China, but imports over 2.9 times more than third-place South Korea and over three times more than fourth-place Japan. Smaller herds, higher production costs, and tariffs have been a potent bullish cocktail for the live and feeder cattle futures market. Seasonality could cause a correction The 2025 peak grilling season runs from late May through early September when the weather and vacations favor outdoor gatherings, and the aroma of sizzling beef fills the air. Beef and pork prices tend to rise to annual highs during late spring and summer and fall to annual lows when barbecues head back into storage after the Labor Day holiday weekend. With cattle futures at record highs, the odds favor a correction during the 2025/2026 offseason. However, prices have remained steady, making higher lows and higher highs during the offseason since the 2020 lows. Buying dips over the coming months could be optimal The cattle trend remains bullish, no pun intended, as the market is in the heart of the 2025 grilling season. While a correction becomes more likely as prices rise, the beef market fundamentals suggest that prices could continue to increase, tariffs being the latest factor that is causing U.S. beef consumers to pay higher prices for their steaks, burgers, hot dogs, and other beef products. Any significant correction could be a tasty buying opportunity for the 2026 peak grilling season, which gets underway next May. The trend in any market is always a trader's or investor's best friend, and when technicals and fundamentals agree, the results are typically explosive. Expect to pay more for beef over the coming months as the cattle bull continues to charge higher. On the date of publication, Andrew Hecht did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
