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Demand for Oil & Corn Falls, Prices Follow

September 15, 2011 at 3:18 by Vladimir Vyun

Crude oil declined on the speculation the growing US fuel inventories and the signs of the global economic slowdown will decrease demand for fuel. The report of the Energy Department showed the gasoline stockpiles increased by 1.9 million barrels last week. Analysts predict that the government report today will show the industrial production almost stalled last month. October futures for delivery of crude oil fell $0.59 to $88.32 per barrel on NYMEX before trading at $88.68.

Corn fell as ethanol production in the US slowed, reducing demand. The report of the Energy Department showed the production in ethanol rose 6.9 percent in the first five month of 2011, compared with the 29.7 percent in the same period of 2010. The US Department of Agriculture predicted the global consumption of corn will fall to 505.1 million metric tons in September from 510.09 million tons in August. Contract for delivery of corn in December dropped 0.8 percent to $7.1875 per bushel on CBoT.

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