News

May 05, 2008

Market Roundup: Soybeans Up But Grains Down, As The Dollar Strengthens

By Sally White

The increasing consumption of food commodities by the alternative energy sector at a time of shortages is causing increasing international disquiet. In the US on Friday, two dozen Republican senators asked the Environmental Protection Agency (EPA) to adjust the requirements mandated by Congress in 2007 for the blending of more ethanol and other renewable fuels into the gasoline supply.

Presidential hopeful Senator John McCain joined 22 others in urging the EPA to modify the requirement, which was originally aimed at reducing US dependence on foreign oil. The group argued that the mandates are contributing to the acceleration in food price increases.
 
In markets generally a brighter picture for stock markets and the strengthened US dollar attracted the money at the expense of commodities last week. US payroll data was strong and encouraged some hopes of limited...