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China’s Speculators Stockpile Copper; Corn & Soybeans Fell; Cotton Advanced

September 17, 2009 at 22:02 by Vladimir Vyun

Pig farmers and other private investors in China, the largest metals user in the world, have amassed more than 50,000 metric tons of copper as the government ramps up stimulus spending to spur the economy. Reason for the increase in demand may be pessimistic outlook for the economy making people to invest in copper as a store of value, not unlike they would with gold. The metal traded today at $6,470 per ton on the London Metal Exchange. Thus a holding of 50,000 tons worth $324 million.

Corn and soybeans fell as weather forecast indicated that temperatures will stay above freezing next week in the Midwest, lowering the threat of crop damage. Corn yield will reach 12.954 billion bushels, soybean output will climb to 3.245 billion bushels. December futures for corn delivery dropped $0.0775 (2.3 percent) to $3.285 per bushel as of 9:57 a.m. on CBoT. November futures for soybean delivery went down $0.0425 (0.4 percent) to $9.4625 per bushel in Chicago.

Cotton advanced, heading for the longest rally in 36 years, on concern that weather in India, the second-biggest producer in the world, may reduce crops and on signs of possible increase in demand in the U.S. because of a rebounding economy. Rainfalls in India were 21 percent below normal. U.S. housing and unemployment data signals that the recession may be over. December futures for cotton delivery gained $0.0037 (0.6 percent) to $0.6389 per pound by 11:33 on ICE Futures U.S. in New York.

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