India’s rupee plummeted past 64 per dollar for the first time on concern foreign outflows will accelerate as the Federal Reserve prepares to trim stimulus.
The worst monsoon in India in three years is hurting the sugar-cane crop, stoking concern that the world’s biggest consumer may restrict exports to cool the highest domestic prices in 19 months.
U.S. government estimates for wheat harvests in Russia, Kazakhstan and the European Union may be too high as adverse weather spurs “widespread production downgrades,” Barclays Plc said.
Corn rose for a third day to the highest price since 2008 in Chicago on concern that a planned increase in sowing in the U.S. will fail to rebuild global inventories drained by stronger demand.
South American farmers are preparing to plant record grain and oilseed crops that may temper surging food inflation caused by the worst U.S. drought in a generation.
Speculators reduced bets on commodities to a 31-month low on mounting concern that global economic growth is slowing as Goldman Sachs Group Inc. and Barclays Capital reiterated predictions that prices will gain.
Corn traded within 0.7 percent of a 14-month high in Chicago on speculation that dwindling supplies of grain for use as feed may support prices.
Soybeans rose in Chicago, narrowing a second weekly drop, on speculation dryness in South America will further curb production.
Corn fell for a third day in Chicago, heading for the biggest weekly slide since September, after the U.S. predicted higher crop yields. Soybeans dropped on an estimate for larger domestic stockpiles.
Wheat crops in China, the world’s biggest producer, and the U.S. are threatened by continuing drought as La Nina persists, weather forecasters said.
"The grains have been the strongest-performing subsector in commodities the past few months, and that has purely been driven by supply-side considerations and the U.S. drought in particular."
- Sudakshina Unnikrishnan on Aug 21, 2012