SUPPLIES, MIDEAST TENSION FUEL GAINS IN OIL

  Petroleum futures rallied today in a
  market that was expecting declines in domestic supplies and
  became further unsettled by escalated Mideast fighting.
      Crude oil, gasoline and heating oil all posted gains on the
  New York Mercantile Exchange, with crude oil prices matching
  life-of-contract highs. Crude for delivery in May closed 17
  cents higher at 18.84 dlrs a barrel.
      "Crude futures could jump above 19 dlrs a barrel but will
  not remain there long if products are not strong," Robert
  Murphy, account executive at E.F. Hutton, said.
      Traders said prices were supported by anticipation that the
  American Petroleum Institute would report a decline in domestic
  inventories of petroleum products in a weekly report.
      Traders said prices also were supported by an escalation in
  the Iran-Iraq war, with the Iranians reportedly launching a new
  offensive against Iraqi positions, and Iraq attacking offshore
  oil fields and an oil export depot.
      Buying by speculators continued to prompt gains in gold and
  silver futures on the Commodity Exchange in New York.
      Gold prices retreated at midday, but rallied before the
  close with support from the silver market, which was
  approaching two-year highs, traders said.
      Soybean futures posted strong gains on the Chicago Board of
  Trade, while corn and wheat were mostly higher.
      Traders said cash sales have been slow in the country, and
  the soybean harvest in Brazil has been delayed by rain, which
  is limiting supplies.
      In addition, the Agriculture Department last week projected
  a substantial drop in soybean acreage this year.     Monday's
  report that the USDA inspected 46 mln bushels of corn for
  export last week was unexpectedly high and, coupled with a lack
  of farm sales, provided support for the corn market, traders
  said.
      Live hogs and frozen pork bellies rallied on the Chicago
  Mercantile Exchange, while cattle ended lower.
      Live hogs pushed ahead on a lack of supplies because many
  farmers are turning their attention to spring planting rather
  than marketing livestock, traders said, noting that cash sales
  have been lighter than expected this week.
      The lack of marketing also has supported pork bellies, but
  prices drifted lower for moderate losses in nearby months as
  speculators sold contracts to take profits, traders said.
      Cattle prices closed lower but continued to show strength
  related to tight supplies.
      Prices pushed ahead to new contract highs, extending gains
  past three-year peaks set Monday, as tight supplies forced meat
  packers to bid aggressively for available animals.
      However, some traders sold contracts to take profits after
  the extended rally, which has seen the April delivery contract
  soar to 69.90 cents a pound from 56 cents a pound at the start
  of the year.
      New York coffee futures closed higher on trade talk Brazil
  would not be an aggressive seller near term, analysts said.
  

