Sharply falling crude oil futures Tuesday morning are dragging down the price of other commodities, including crops.
Light crude on the New York exchange is down $3.38 per barrel at $106.53 in mid morning trade. It fell $2.87 on Monday.
It is falling on lackluster demand and adequate supply despite disruptions in Libya. Investment house Goldman Sachs on Monday warned of a substantial pullback in oil prices because speculators had pushed prices ahead of fundamentals.
Crop futures were also negatively affected by worries about Japan’s nuclear power crisis and its potential effect on that country’s demand.
These factors overwhelmed the price-supporting USDA report Monday that showed the declining condition of the U.S. hard red winter wheat crop, which is enduring drought in the southern and western part of its growing range.
May canola is down $11.10, or 1.9 percent, at $571.10 per tonne in mid morning trade.
May soybeans are down 36 cents or 2.6 percent at $13.325 per bushel.
May corn is down 17.25 cents or 2.2 percent at $7.5875.
May spring wheat is down 28.75 cents or 3.1 percent at $9.07.
