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Oil Falls On Bad Fundamentals, Corn Rallies on Heat & Drought

July 2, 2012 at 23:39 by Vladimir Vyun

Crude oil fell on negative economic reports from the United States and the eurozone. The US manufacturing Purchasing Mangers’ Index fell from 53.5 in May to 49.7 in June, more than was predicted by analysts. A value below 50.0 indicates contraction. That was the first decline since July 2009. The eurozone unemployment rate rose from 11.0 percent in April to 11.1 percent in May. August futures for delivery of crude oil fell as much as $1.21 to $83.75 per barrel on NYMEX today. Brent crude was down from $97.75 to $97.37 per barrel as of 23:25 GMT o ICE today, following the earlier drop to $95.30.

Corn jumped today to the highest level in more than nine months on forecast that hot dry weather in the United States would hurt crops. Telvent DTN predicted that temperatures in thee US Midwest would stay above 32 degrees Celsius. The heat and absence of rainfall is expected to stay till at least July 7. Most of the region received below-normal level of precipitation in the previous month. Corn jumped from $6.8500 per to $6.9950 per bushel on CBoT today, reaching $7.0875 intraday — the highest level since September 15.

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