Commodity Blog

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Decline of Corn, Soybeans, Gold

October 26, 2009 at 21:57 by Vladimir Vyun

Corn slumped to the lowest since August and soybeans slid on speculation that farmers in the U.S., the largest producer and exporter in the world, spurred sales to take advantage of the highest prices since before the harvest. The three-week rally in prices was caused by rains in the Midwest that has cut harvesting to half the five-year pace by October 18th and threatened to hurt crops. The corn yield may reach 25 percent this week and soybeans yield should reach about 50 percent. That should ease some of the concern that the crops can be damaged by the bad weather. December futures for corn delivery slumped $0.1475 (3.7 percent) to $3.83 per bushel by 12:07 on the Chicago Board of Trade. January futures for soybean delivery slid $0.1725 (1.7 percent) to $9.9025 per bushel on CBoT.

Gold declined the lowest in more than a week because the strengthening dollar cut the attractiveness of the precious metal as an inflation hedge. Gold typically moves inversely to the dollar. Thus a lot of people are looking at the performance of the dollar, tending to buy gold when the dollar declines. December futures for gold delivery declined $13.60 (1.3 percent) to $1,042.80 on NYMEX.

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