Friday, September 25, 2009

Wheat Plunges, Oil and Copper Up

Wheat prices plunged by five percent, as global supplies keep the prices down. Other concerns are Australia may cancel its wheat export licenses at three of the large grain companies in the nation.

Another potential obstacle viewed by wheat investors was the possibility of increasing storage fees for wheat, which could effectively drive speculators out of the market.

Good weather for winter wheat has also brought fears that there will continue to be far too much wheat on the market to sustain a higher price of the months ahead. The December wheat contract dropped to $4.49-3/4 a bushel on the Chicago Board of Trade.

For crude oil, it gained 13 cents a barrel in New York, after it fell 8 percent over the last couple of days. It finished at $66.02 a barrel on the New York Mercantile Exchange.

Copper futures in the U.S. enjoyed a 1 percent gain, after a couple of rough sessions over the last couple of days, losing about five percent of its value during that time. December contracts finished at $2.7405 a pound, an increase of 3.10 cents on the COMEX metals division of NYMEX.

Copper on the London Metal Exchange rose by $40 to end the day at $5,990 a ton. Most of that increase came from a drop in inventory at the LME warhouses by 175 tons over the day before.

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