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Wheat Goes Up, Oil Fluctuates, Copper Falls

April 12, 2010 at 20:31 by Vladimir Vyun

Wheat gained on the outlook that the weak dollar will increase the appeal of the grains as an inflation hedge and will bolster demand for the supplies from the U.S. The weak dollar can increase the purchasing ability of the crop importers from the U.S. July futures for wheat delivery gained $0.05 (1 percent) to $4.8425 per bushel at 9:46 on CBoT.

Crude oil fluctuated around $85 per barrel as the speculation about the dollar weakness spurs demand for the commodity as an alternative asset, driving the prices up, yet the concern for the declining demand forces the oil prices downward. The rescue package, provided to Greece by the European Union, sparked expectations for the dollar to fall versus the euro. In the same time, the global inventories are stockpiling, the U.S. inventories are above average and there is no sign of supplies decline. May delivery for crude oil for dropped $0.04 to $84.88 per barrel by 12:39 on the New York Mercantile Exchange.

Copper prices dropped from the highest level in 20 months on speculation that the rally was excessive. Previously prices have risen on outlook for the economic recovery in the U.S., but the National Bureau of Economic Research insisted that it is too early to talk about the end of the U.S. economic recession. May futures for copper delivery fell $0.024 (0.7 percent) to $3.566 per pound as of 12:48 on NYMEX.

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