Overnight Grains
In another yo-yo session overnight grains have traded either side of the market Monday morning as traders grapple with conflicting news.
At 9am BST wheat was around 12c lower, corn 6-7c easier and soybeans down 5-8c.
In earlier trade all three commodities had been around 10c higher on speculation that the U.S. may cut interest rates, reviving demand.
Fed policy makers are meeting this week, and are forecast to lower rates for a second time this month to try to thaw frozen credit markets and avert a deepening recession.
However, sharply lower Asian and European stock markets, and weaker crude oil conspired to press the grains complex lower by 9am in London.
December crude is down $2.80 at $61.35/barrel and Brent crude is now below $60/barrel.
Traders report "a lot of action" Friday in December 2008 $50 put options, or the right to sell oil at $50 a barrel, implying expectations of a further sharp fall in prices. Those options expire Nov. 17.
At 9am BST wheat was around 12c lower, corn 6-7c easier and soybeans down 5-8c.
In earlier trade all three commodities had been around 10c higher on speculation that the U.S. may cut interest rates, reviving demand.
Fed policy makers are meeting this week, and are forecast to lower rates for a second time this month to try to thaw frozen credit markets and avert a deepening recession.
However, sharply lower Asian and European stock markets, and weaker crude oil conspired to press the grains complex lower by 9am in London.
December crude is down $2.80 at $61.35/barrel and Brent crude is now below $60/barrel.
Traders report "a lot of action" Friday in December 2008 $50 put options, or the right to sell oil at $50 a barrel, implying expectations of a further sharp fall in prices. Those options expire Nov. 17.
