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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