Chicago grain prices slump as stronger dollar erodes appeal

08:09, November 17, 2010      

Email | Print | Subscribe | Comments | Forum 

Chicago grain prices on Tuesday suffered a sharp drop as a stronger dollar eroded appeal of grain commodities on the international market. Besides, China's stance to cool inflation also helped weigh on the market.

The most active corn contract for December delivery shed 29 cents, or 5.2 percent, to 6.2615 U.S. dollars per bushel. December wheat lost 46.5 cents, or 6.5 percent, to 7.125 dollars per bushel. January soybean declined 66.75 cents, or 5.2 percent, to 12.1975 dollars per bushel.

The dollar index Tuesday advanced for a second straight day, rising as much as 1.2 percent against a basket of six major currencies, amid uncertainties over EU aid to Ireland to solve its debt problem. The index has gained four percent since the prior week.

An expensive dollar could reduce the appeal of commodities priced in dollar for investors holding other currencies.

Besides, China Tuesday announced that the central government is drafting measures to counter the fastest inflation in two years, which also placed more pressure on the market.

A trader noted that although China has not specified the measures in cooling inflation, most investors opt to liquidate commodity long positions and wait and see what happens in China.

As a result, corn tumbled to a five-week low in Chicago and soybeans dropped 5.2 percent from the prior trading day.

Aside from above negative forces, the wheat market, which dropped the most in three months, was also affected by wet weather in the U.S., which is expected to development of winter wheat crops.

Parts of the Great Plains got as much as 2.5 inches (6.4 centimeters) of rain last week, which improving crops prospect. Some of the fields received less than half the normal amount in the past month.

Source: Xinhua

(Editor:李佳)

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Chinese Navy soldiers hold an evening party marking the upcoming 62nd National Day aboard Chinese Navy hospital ship "Peace Ark" in the Pacific on Sept. 28, 2011. The Chinese National Day falls on Oct. 1. (Xinhua/Zha Chunming)
  • Photo taken on Sept. 30, 2011 shows the crowd at the plaza of Beijing Railway Station in Beijing, capital of China. The railway transportation witnessed a travel peak with the approach of the seven-day National Day holidays on Friday. (Xinhua)
  • A man wearing high-heel shoes takes part in the 3rd annual Walk a Mile in Her Shoes, an event when men literally walk in women's shoes to raise awareness about ending violence against women, at Yonge-Dundas Square in Toronto, Canada, Sept. 29, 2011. (Xinhua/Zou Zheng)
  • Photo taken on Sept. 29, 2011 shows a cargo ship in danger on the sea near Zhuhai City, south China's Guangdong Province. Cargo ship Fangzhou 6 of Qingzhou of southwest China's Guangxi Zhuang Autonomous Region lost control after water stormed into its cabin due to Typhoon Nesat on the sea near Zhuhai Thursday, leaving 12 crew members in danger. Rescuers rushed to the ship and saved them by using a helicopter. (Xinhua)
  • Actress Gong Li poses for L'Officiel Magazine. (Xinhua Photo)
  • Demonstrators from the Occupy Wall Street campaign hold placards as they march in the financial district of New York September 29, 2011. After hundreds of protesters were denied access to some areas outside the New York Stock Exchange on September 17, demonstrators set up a rag-tag camp three blocks away. Zuccotti Park is a campground festooned with placards and anti-Wall Street slogans. The group is adding complaints of excessive police force against protesters and police treatment of ethnic minorities and Muslims to its grievances list, which includes bank bailouts, foreclosures and high unemployment. (Xinhua/Reuters Photo)
Hot Forum Discussion