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Wheat Declines with Falling Demand for U.S. Supplies; Gold & Silver Fall as Dollar Gains

September 1, 2009 at 21:16 by Vladimir Vyun

Wheat slumped to the lowest in three weeks because of lack of demand for supplies from the U.S., the world’s biggest exporter. While stockpiles of the grain were increasing, possibly climbing up 8.3 percent to 183.6 million metric tons by May 31, demand was declining. Overseas buyers are planning to buy 8.4 million metric tons of wheat from the U.S. in the period from June 1st through August 20th, which are 42 percent lower compared to the same period in the previous year, and actual shipments of the wheat have fallen 47 percent to 4.1 million tons since the start of the marketing year. December futures for wheat delivery dropped $0.1225 (2.5 percent) to $4.865 per bushel by 10:40 on the Chicago Board of Trade.

Gold and silver decline as a dollar’s gain lowers demand for the precious metals as an alternative investment. Increasing number of Americans signing contracts to buy homes and positive manufacturing data signal ease in inflation concerns. As crisis conditions are dissipating, some investors sell gold when the dollar gains. December futures for gold delivery declined $1 to $952.50 per ounce as of 12:06 on NYMEX. December delivery for silver dropped $0.148 (1 percent) to $14.7775 per ounce in New York.

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