Wheat, Corn and Soybean Futures Fall on Recession Forecast
Wheat fell in U.S. along with corn and soybean futures on Wednesday as fears of an economic recession in 2008 rise.
For a second day wheat declined on speculation that an economic slowdown will hit the U.S. affecting commodities demand. The U.S. Federal Reserve took a resolved on Tuesday to reduce interest rates by 0.75 percent to 3.5 percent to generate positive activity in the global markets.
Yet, worries remain as investors believe the Fed's action will not stave off a recession.
Wheat futures for March dropped 11.75 cents or 1.3 percent, to $9.2225 a bushel at 12:29 p.m. on the Chicago Board of Trade. Corn for delivery in March fell 8 cents at $4.81 and soy for the same month was down 13 cents at $12.26 per half bushel.
Futures contract for Chicago wheat surpassed$10 in December 2007. Since then the grain has declined by 10 percent. According to government information, wheat is the fourth biggest crop in U.S. in 2006 with a value of $7.7 billion. Ahead are corn, soybeans and hay.
The Fed is expected to reduce interest rates at the end of scheduled meeting between January 29 and 30.
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