Here is this week’s edition of Futures File, our weekly commodities wrap-up:
Grains get crushed
Corn and wheat prices have been plummeting recently, an unwelcome sign for Midwestern farmers who have been busy planting corn and are preparing to harvest their winter wheat.
Nearly 90 percent of this year’s corn crop has already been planted, which is pulling prices lower as the young plants are off to a good start. Corn that will be harvested this fall is traded on the futures market as December corn, which fell to $4.59 per bushel on Friday, a three-month low.
Meanwhile, U.S. winter wheat, which is largely harvested during June, is in middling shape due to the ongoing drought across the Great Plains. Nonetheless, prices for wheat have been dropping as European-grown wheat is flooding the market, dragging prices for July wheat under $6.30 per bushel, the lowest price since early March.
Unlike corn and wheat, soybean prices have held strong, with July beans trading Friday at $15.00 per bushel. Strong Chinese demand and a slow South American soybean harvest have been boosting prices for U.S. beans.
Euro continues slide
The euro currency fell after news broke of rising unemployment in France and Germany, the European Union’s two largest economies.
In addition, ongoing fears that a trade standoff with Russia could hamper the European economy have been weighing on investors. These factors are leading to increased expectations that the European Central Bank will release a new round of stimulus to bolster ailing economies.