Commodities Tumbles as Europe Enters Recession
Commodities declined after a report showed that the eurozone economy contracted. Eurostat reported that eurozone gross domestic product fell 0.3 percent in the fourth quarter of 2011. The negative data hurt most commodities, including crude oil, corn, sugar, and wheat.
Crude oil also declined on the speculation that the European Union may resume negotiations with Iran about the Iranian nuclear program. Forecasters predict that today’s report will show an increase of the US stockpiles, adding to the downside factors for crude. As of agricultural commodities, experts forecast that supply will outpace demand for most of crops, decreasing prices even further.
April futures for crude oil delivery traded at $104.99 per barrel on NYMEX today after falling $2.02 to $104.70 per barrel yesterday. Brent traded near $122.12 per barrel on ICE today after yesterday’s drop from $124.27 to $122.32. Corn fell from $6.6475 to $6.5600 per bushel before trading today at $6.5800 on CBoT. Sugar was down from $0.2462 to $0.2406 per pound on ICE at yesterday’s trading session. Wheat was at $6.5325 per bushel on CBoT today, while it was down from $6.6625 to $6.5600 yesterday.
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