Commodity Price Movement Analysis October : Global food commodity price movements on the trade earlier this month was observed to have a fairly positive movement. After the last week of August had experienced ketertekanan due to the negative impact of the drop in crude oil prices down to the position of 72 dollars per barrel.
Corn, soybean and wheat which previously had a solid and is in positive trend, last week had been weakened and moves at a negative level. Drop in crude oil prices is the result caused by poor conditions in which U.S. economic fundamentals are still experiencing some economic data such as data reduction property and manufacturing sectors which bring back negative expectations for U.S. economic growth.
But the sentiment was little by little began to decrease in early September. Some positive sentiment as the factors begin bullishnya crude oil, forecast demand and also speculation the number of requests also provide impetus to the strengthening of food commodity prices. In terms of demand, the focus of capacity demand for food commodities are still in control of food global food price movements. As the world's largest importers of food commodities at this time, Chinese demand is expected to rise until the end of this year. The condition was based on the release of the report that China's demand for food commodities by the end of the first half of this year increased by 16%.
Specifically, the third movement of food commodities are corn, wheat and soybeans, corn movements recorded in the past week quite experienced significant movement. Moreover, the last on Sept. 1 the price of corn had the highest increase of 4.3925 dollars per bushel or a movement of the highest in 14 months. Dominant factor that caused his bullish corn due to higher crude oil prices that simultaneously rose to the position of 74 dollars per barrel.
Rising oil prices are memebrikan domino effect of rising demand for raw corn prices that became the raw material of ethanol in the U.S.. Positive trend continues 2 days back kemuadian where corn prices posted the highest increase since June 2009 in the 4:48 position dollars per bushel. Factors partially damaged corn plantations in the Russian region due to weather factors that cause temperature rise some time ago to be the cause of speculation will be reduced production of Russia which is the supplier and the largest manufacturer of corn and wheat in Europe. And at the same time, total U.S. corn exports for the period of August was reported to increase to 10,616 million metric tons.