Wheat hits new records again in US, France

Wheat prices hit a new record high on the Chicago Board of Trade Tuesday as December wheat rose its daily allowable maximum of 30 cents to $8.055 per bushel and stayed there as demand grew amid reports that the Southern Hemisphere’s crops are not expected to fare much better than Northern Hemisphere crops have this year.

November milling wheat in France also reached a new record as it added 6.8 percent to €285 per tonne.

CBOT November soybeans were also higher, adding 25 cents to $9.075 per bushel after hot temperatures and lower-than-normal rainfall in US growing areas coupled with less acreage farmed have caused the Department of Agriculture predictions that production will be down by 18 percent this year.

Meanwhile, Decmeber soybean oil gained 0.76 cent to 37.87 cents per pound.

December corn was also higher, adding 13.25 cents in Chicago to $3.53 per bushel.

December coffee futures on the New York Board of Trade added 2.1 cents to $1.1795 per pound in late morning trade as analysts and traders worried that Hurricane Felix could harm crops in Honduras, which is Central America’s second-largest exporter of coffee beans.

Precious metals prices were higher on Tuesday as investors bet that demand for gold will rise along with US equities markets.

December gold added $9.60 in New York to $691.50 per troy ounce, the biggest gain for a front-month contract since the beginning of June, while December silver was up 22 cents to $12.45 per troy ounce and October platinum gained $2.10 to $1,273.70 per troy ounce.

In base metals, meanwhile, December copper fell 9 cents to $3.31 per pound in New York, while three-month copper on the London Metal Exchange was $129 lower at last report to $7,270 per tonne.

A slowdown in US manufacturing activity in August, less spending on construction in July, and higher inventories in London all worked to raise fears that demand might be down.

Other base metals were lower in London, including nickel, which dropped 3.7 percent on the session.

Crude oil prices were higher on Tuesday as Hurricane Felix hit Central America and as forecasters said they expect the end of the Hurricane season, which lasts through November, to be active.

October contracts for Brent crude added 44 cents to $73.85 per barrel on the Intercontinental Exchange in London, while West Texas Intermediate for October delivery was reported to be $1.04 higher to $75.08 shortly after the close of floor trade on the New York Mercantile Exchange.

Nymex December gasoline was up 2 cents to $1.94 per gallon, while October heating oil had also gained 2 cents, to $2.08 per gallon and October natural gas added 13 cents to trade at $5.60 per million British thermal units.

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