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News 167 views last update:6 Aug 2012

Grain prices collapse, safe havens lure

Global commodity prices, including those for wheat, have collapsed this week as investors shift funds into safe havens such as gold.

The Chicago Board of Trade's agricultural futures are down across the board, with corn and soybeans finishing limit down. According to CBOT's daily market wrap, Commodity News for Tomorrow, traders have been spooked by outside events on the broader financial markets.

"The dominant issue is the outside markets," it quoted one trader as saying. "I think that's just a big headwind." According to CBOT, December '08 corn closed US30c per bushel down; November '08 soybeans lost 70c/bu; December '08 wheat lost 45c/bu and December '08 oats lost 20c/bu.

According to traders many wheat farmers around the world increased their planting to try and take advantage of the high wheat prices last year and this factor is weighing heavily on US wheat futures.

International wheat prices continue to decline as the Black Sea and Europe compete to attract export wheat sales.

For actual commodity prices go to CBOT

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