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Copper gained; High Oil Options; Corn & Soybeans Slumped

September 21, 2009 at 22:16 by Vladimir Vyun

Copper prices gained after a report that the index of U.S. leading economic indicators increased for a fifth month, causing expectations for growth in metals demand. There is speculation that consumption of raw materials will increase with rebound in economy boosting demand from home-building and manufacturing industries. December delivery for copper gained $0.0205 (0.7 percent) to $2.8055 per pound on the New York Mercantile Exchange’s Comex division.

Oil traders are paying high for the options to protect against a plunge in crude prices. Growth in prices after the recovery from the global recession alone isn’t enough to erode the glut by the end of next year because production exceeds demand. October delivery for oil slid $2.94 (4.3 percent) to $68.96 a barrel on NYMEX today.

Corn and soybeans fell because warm weather will help crop mature in the U.S., the biggest producer and exporter of both in the world. The weather speeds maturation of plants before freezing weather can damage yields. Corn yield will increase to 12.954 billion bushels (7 percent) this year. Soybean production will climb to a record 3.245 billion bushels (9.7 percent). December futures for corn delivery dropped $0.02 (0.6 percent) to $3.16 per bushel on CBoT. November futures for soybean delivery slumped $0.275 (2.9 percent) to $9.135 per bushel in Chicago.

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