November 24, 2010
CBOT wheat prices hinging on Korean developments
Fears of increasing tensions between North and South Korea have caused the prices of wheat futures to plummet the most this past week on CBOT.
South Korea was the world's fifth-biggest importer of the US fourth biggest crop. However, after North Korea launched artillery shells on Monday over the border and killed two South Korean soldiers and destroyed homes, analysts are wondering what will be the extent of the hostilities.
Although the dollar climbed to its peak value in eight weeks, the Thomson Reuters/Jeffries CRB Index of 19 raw materials dropped to its lowest level in four weeks. Wheat futures for March delivery sank by US$0.055 to US$6.79 a bushel on CBOT.
"The dollar's strength will lead to defensiveness in the wheat market," an analyst said.
