Decline of Soybeans; Falling Cocoa Exports in Nigeria; Gain in Gold
Soybeans slid to the lowest price this month as good weather increased yield prospects in the U.S. As there are plenty of rains and temperature is not too hot or too cold, soybeans harvest promises to be great. November futures for soybean delivery fell $0.06 (0.6 percent) to $9.53 per bushel at 10:16 a.m. on CBoT.
Cocoa exports in Nigeria can fall because of jute bags shortage. If Nigeria fails to get food-grade jute bags for cocoa beans, farmers will be forced to use old or infested bags which may cause buyers to reject the beans. The Nigerian government stopped to supply subsidized bags to farmers two years ago. Cocoa producers are planning to meet with the Minister of Agriculture and Water Resources to bring the issue to the government’s attention. The price for the bags rose from about 140 naira ($0.88) per bag last year to 300 naira now. September delivery for cocoa gained 0.9 percent to 1,738 pounds ($2,847.37) as of 10:40 on the Liffe Exchange in London.
Gold gains as dollar decline against euro boosting the precious metal’s appeal as hedge against inflation. There is speculation that global economic revival can cause investment demand to fall demand for jewelry to rebound. December futures for gold delivery rose $4.90 (0.5 percent) to $944.10 per ounce by 11:43 on the Comex division of the New York Mercantile Exchange.
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