Monday, October 6, 2008

Corn Drops Maximum Allowed on Spread of Economic Fears

Corn dropped by the maximum allowed on the Chicago Board of Trade (CBOT) today as the spread of economic fears and realities is starting to hit Europe hard, and China and India are showing signs of slowing demand as well.

Growing concern on a global scale is causing almost all commodities to fall in price as demand across the board decreases. The only exception to positive growth for commodities for today was with Gold.

Much of the problem continues to be access to capital. It's possible to continue to have a negative impact even as prices drop because of inability to acquire the needed operational funds.

Corn for December delivery fell as low as the maximum allowed, to $4.24 a bushel earlier in the day.

The golden nugget continues its poor performance, following up its horrible week that just ended where it crashed by 16 percent, the most since June 1973.

It's far down from its $7.9925 a bushel it reached on June 30 of 2008, a 47 percent plunge.

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