Copper Falls on Spain’s Woes, Wheat Gains on Rising Demand
Commodities, including copper remain under pressure from the debt crisis in Europe. Traders nervously expect the outcome of the Greek elections in June, but the problem is not restricted to Greece alone. Credit ratings of Spain’s banks were downgraded by rating agencies and Standard & Poor’s cut sovereign rating of Spain. Europe is a big part of the global economy and its troubles reverberate across the whole world, subduing demand for raw materials. Copper was down from $3.4540 to $3.4480 per pound on COMEX today.
Wheat advanced on speculation that demand will shift to US exports amid decline of global output. The International Grain Council reported that global production of wheat will drop 3.5 percent to 670.5 million metric tons in the year that begins June 1, compared to the record 694.8 million harvested a year ago. The US Department of Agriculture said that US suppliers sold 754,599 tons of the grain for delivery after June in the week ended May 17, compared to 389,616 in the previous week. Wheat advanced from $6.6475 to $6.7500 per bushel on CBoT today, while earlier it touched $6.8725.
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