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Bad Day for Corn, Soybeans, Wheat & Oil

January 7, 2011 at 23:15 by Vladimir Vyun

Wheat dropped today as forecasts promised snowy weather in the US, improving outlook for crops. For now conditions are too dry for plants and snow may aid crops, boosting output. March futures for wheat delivery dropped $0.15 (1.9 percent) to $7.74 per bushel as of 13:15 on CBoT.

Favorable weather also hurt prices for corn and soybeans as rains in Argentina and Brazil may increase output. The regions will receive substantial amount of precipitation over next two weeks to improve prospects for crops. Speculation about declining demand from China drove the prices further down. March futures for corn delivery went down $0.07 (1.2 percent) to $5.95 per bushel by 13:15 on CBoT. March futures for soybean delivery lost $0.13 (0.9 percent) to $13.65 per bushel.

Oil dropped to the lowest level in two weeks today as US nonfarm payrolls were worse than predicted, causing commodities to fall. Payrolls increased by 103,000 in December, while traders expected an increase by 159,000. February settlement for oil delivery slipped $0.35 to $88.03 per barrel on NYMEX, the lowest price since December 17th, after it previously advanced to $89.48.

If you have any questions and comments on the commodities today, use the form below to reply.

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