Wheat prices jump on bargain buying
By STEVENSON JACOBS
Associated Press
Friday, August 8, 2008 10:32 AM PDT
NEW YORK — Wheat prices jumped more than 50 cents a bushel Thursday after a big decline the previous day attracted new buyers seeking to lock in cheap supplies of the grain used to make pasta, bread and other food.
Other commodities traded mixed, with crude oil rebounding slightly and gold, silver and copper futures falling.
A day after a big sell-off, wheat surged almost the daily price limit, carrying corn, soybeans and other agriculture futures with it. Crude oil’s late-session rally also boosted wheat buying from investors seeking commodities as an inflation hedge.
Wheat for September delivery added 56.5 cents to settle at $8.2225 a bushel on the Chicago Board of Trade, just shy of the 60-cent daily limit. Prices had traded lower earlier in the day.
“We ended on a strong note compared to where the market had been,” said Vic Lespinasse of
Grainanalyst.com.
Other agriculture futures also traded higher. Corn for December delivery rose 14.25 cents to settle at $5.42 a bushel on the CBOT, while November soybeans rose 17 cents to settle at $12.39 a bushel.
Crude ended higher for the first time in four sessions after Kurdish rebels claimed responsibility for sabotaging a Turkish oil pipeline and key supply link to Western countries. The purported attack caused a fire that was still burning late Thursday, and Turkish state-run media reported the pipeline could be closed for up to 15 days.
Light, sweet crude for September delivery rose $1.44 to settle at $120.02 a barrel on the New York Mercantile Exchange, after fluctuating between gains and losses for part of the day.
Other energy futures also traded higher.
Heating oil futures slipped 0.43 cent to finish at $3.2336 a gallon, while gasoline prices rose 5.34 cents to settle at $3.0027 a gallon.
In precious metals, gold prices fell to an almost two-month low after the dollar strengthened against the euro, diminishing the metal’s appeal as an inflation hedge.
Gold for December delivery fell $5.10 to settle at $877.90 an ounce on the Nymex, after earlier falling to $874.80, the lowest level since June 16.
Other precious metals also fell. Silver for September delivery lost 24.8 cents to settle at $16.257 an ounce on the Nymex, while September copper fell about half a penny to settle at $3.418 a pound.
