Corn, Soybeans, Wheat Drop on Signs Weaker Economy Will Curb Crop Demand - Bloomberg: Corn, soybean and wheat futures fell on speculation that Europe’s sovereign-debt crisis will hinder the global economy, reducing demand for food, livestock feed and fuel made from crops.
The Standard & Poor’s GSCI Index of 24 raw materials dropped as much as 2.1 percent, and global equity markets fell. Josef Ackermann, the chief executive officer of Deutsche Bank AG, said that market conditions remind him of late 2008, which preceded the deepest global economic slump since the 1930s. The U.S. is the world’s top exporter of corn, soybeans and wheat.
“Increasing European debt problems depressed commodity demand,” Greg Grow, the director of agribusiness at Archer Financial Services Inc. in Chicago, said in a telephone interview. “Fear and a lack of confidence in governments to address their debt problems and revive economies are reducing speculative buying.”
Corn futures for December delivery fell 4.25 cents, or 0.6 percent, to close at $7.5575 a bushel at 1:15 p.m. on the Chicago Board of Trade. The price has jumped 63 percent in the past year after hot, dry weather in July and August hurt crops.
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