Many commodity prices plunged today as investors partook in profit-taking at the end of the quarter. Another factor was the report by the U.S. Department of Agriculture which said there will be a supply problem in corn, wheat and soybeans this year, as stockpiles around the world declined.
There wasn't a commodity sector that didn't experience strong declines and sell-offs.
Agriculture
While the number of acres dedicated to corn planting this year have fallen, soybeans and wheat, on the other hand are increasing, with 75 million acres projected to be planted for soybeans and 64 million acres for wheat in 2008. That's an 18 percent increase for soybeans and a 5.5 percent increase for wheat over last year's total.
Corn prices increased on the news there would be only 86 million acres planted this year, in contrast to the 93.6 million planted last year; a drop of 8 percent. Corn ended at $5.6725 a bushel on the CBOT.
Metals
Major metals also fell, with gold, silver and copper all dropping as investors assured themselves profits at the quarter's end. Gold dropped by $14.40 to finish at $916.20 an ounce on the NYMEX. Silver fell 62.5 cents to settle at $17.275 an ounce, and copper prices for May declined by 0.5 cent to end the day at $3.8635 on the NYMEX.
Energy
Futures for energy also fell, as crude oil for May delivery finished down by $4.04, ending at $101.58 a barrel on the NYMEX.
Gasoline futures for April plunged by 10.07 cents, ending at $2.6163 a gallon. Heating oil also dropped 5.58 cents to settle at $3.0492 a gallon.
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