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Corn, Soybeans & Wheat Drop After Disaster in Japan

March 16, 2011 at 0:30 by Vladimir Vyun

Corn, soybeans and wheat dropped today on the speculation that the disaster in Japan will decrease demand for raw materials. The 8.9-magnitude earthquake on March 11 and the resulting tsunami killed thousands and caused significant damage. Fukushima Dai-Ichi nuclear plant of Tokyo Electric Power Company was also damaged by the disaster and now threatens to spread radiation.

Japan slashed its planned purchases of wheat in the tender on March 17 to 32,381 metric tons, 76 percent down from its last week purchases. The danger of nuclear pollution caused Asian countries to check food imports from Japan. Indonesia, Malaysia, Philippines, Singapore, South Korea, and Thailand the took measures to check Japanese fruit, meat, seafood and vegetables for radiation contamination.

May futures for corn delivery dropped by the exchange limit of $0.3 (4.5 percent) to $6.36 per bushel as of 13:15 on CBoT. May futures for soybean delivery fell by the maximum allowed $0.7 (5.2 percent) to $12.70 per bushel, the lowest price since December 13. May futures for wheat delivery slipped $0.53 (7.4 percent) to $6.6775 per bushel, the biggest drop since August 6.

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