US grain and soybean futures tumbled Thursday in a broad selloff of commodities, with futures dropping to six-week lows as investors reduced risk exposure, reflective of slumping energy and metal futures, and a rise in the US dollar. Selling overwhelmed the markets, with the broader-based commodity selling overshadowing supportive crop concerns, analysts said.
The plunge in prices was tied to the sell-off in financial markets, with investors selling long commodity/short dollar positions that had propelled corn, wheat and soybeans last month, analysts said. A rapid rise in the US dollar Thursday weighed on prices, as a stronger dollar raises the cost of basic goods for buyers using other currencies. After driving commodity prices higher for much of 2011 on worries about supply shortages, investors now fear that high prices will lower consumption. Read more ...
This blog is written by Martin Little The Global Miller, published and supported by the GFMT Magazine and the International Milling Directory from Perendale Publishers
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