Chicago grain futures tumble as Goldman Sachs fraud case haunts commodities markets

08:44, April 20, 2010      

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Wheat futures in Chicago Board of Trade dropped the most in three months on Monday, as Goldman Sachs ' predicament triggered a sell-off in commodities markets by reducing investors' risk appetite. Corn and soybean both dipped.

Soybean future for July delivery dropped 8.5 cents to settle at 9.865 U.S. dollars per bushel. July corn was down 16.75 cents to 3. 5725 dollars a bushel. July wheat dipped 23 cents to 4.795 dollars a bushel.

Traders worried that as one of the biggest traders in commodities markets, Goldman Sachs might have to dump some of its holdings, which will have a big impact on the market. Meanwhile, investors have rushed to the dollar market for the purpose of safe- haven, and the stronger dollar has dragged oil prices down, which especially weighed on corn and soybean and further reduced the attractiveness of U.S. grain export.

Wheat witnessed the largest decline since Jan. 12 on Monday, partly due to the decreased demand in the United States and the increasing huge global stockpiles, as well as the ideal weather conditions in the next few days.

Traders noted that the nearly perfect weather and abundant soil moisture and rapid planting have boosted the prospect for U.S. corn, which was credited as the major catalyst of the decline of corn price on Monday.

Traders also indicated that the record high soy production in South America and excellent prospects for soybean crops in the United States have continued to keep a lid on soybean price, although speculation that China may increase purchases of U.S. supplies drove the soy price up last week.

Source:Xinhua

(Editor:黄蓓蓓)

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