News

August 10, 2008

That Was The Week That Was… In Grains And Alternative Fuel Commodities

By Sally White

Figures from the Commodities Futures Trading Commission show that investment dollars shifted out of agriculture commodities this week, as the dollar staged a recovery amidst concern about the deterioration of the economy in the Eurozone. Other factors turning sentiment bearish for agricultural commodity pricing have been lower crude oil prices and favourable crop weather in the US and other parts of the world. There was, however, some bargain hunting on Friday after the steep falls.

The Commodity Research Bureau Spot Market Price Index of 22 basic commodities, which has more than doubled in the past six years, is however up by less than one percent since the start of this year. It has fallen by 8.5 per cent from a record high in May.

Hedge-fund managers and other large speculators boosted their net long positions by 5.1 per cent to hold 258,693 Chicago corn futures contracts in the week ended 29th July, the biggest rise since May,...