And to put that into perpsective that is up from around the $3-4 mark not less than 2 years ago ... should be no doubts agriculture is where the boom and ironically safehaven is ...
Markets up on inflation play; spring wheat hits $25
* Reuters * Monday February 25 2008
By Barani Krishnan NEW YORK, Feb 25 (Reuters) - U.S. spring wheat used to make high protein flour closed up 25 percent on Monday after hitting all-time highs of $25 a bushel as funds plowed into commodities to profit from rising inflation. U.S. cocoa closed at 24-year highs and arabica coffee at 10-year peaks. Oil also settled up, just under $100 a barrel. The Reuters-Jefferies CRB Index, which tracks prices of 24 commodity futures, scaled 400 points for a seventh straight record session. "We are seeing little indication that fund infatuation with commodities has waned, particularly as the global stock and bond markets continue to struggle," said Edward Meir, a commentator on energy and metals markets at MF Global in New York. Analysts have worried that soaring commodity prices may push up prices of essentials such as bread, beverages and gasoline, prompting a surge in headline inflation. To put a lid on prices, some economists think the U.S. Federal Reserve should end its five-month campaign of cutting interest rates to prevent the world's largest economy from slipping into recession. But a senior Fed official said on Monday policy-makers were more concerned about core inflation, which excludes often volatile food and energy prices. "What you're really concerned about is what's going with the long run or underlying trend in inflation, and that's what we need to focus on," Fed Governor Frederic Mishkin said. Most contracts in spring wheat traded on the Minneapolis Grain Exchange hit the 90-cent limit-up for a session. MGE's spot March closed up $4.75 at $24.00 per bushel after rising to $25 -- a peak for any U.S. wheat contract. The rally on the MGE also took wheat on the Chicago Board of Trade and Kansas City Board of Trade to limit-highs. CBOT corn and soybeans closed sharply up as well. In cocoa, the May contract on ICE Futures U,.S. ended pit trading $42 higher at $2,604 per tonne, the loftiest price for the second month since June 1984. In arabica coffee, ICE's May contract closed 1.60 cents stronger at $1.64 per lb, the highest close since February 1998 for the second position on the market. U.S. crude oil settled up 42 cents at $99.23 a barrel as cold weather in Europe and parts of the United States fired up demand for heating fuels. London Brent crude finished 68 cents higher at $97.69 a barrel. Also on the energy front, London gasoil futures struck a record high while U.S. natural gas briefly touched a two-year peak and heating oil gained close to 1 percent. Metals retreated from their recent highs. U.S. gold futures finished lower and off last week's record high after a U.S. official said Congress could support gold sales by the International Monetary Fund (IMF), stirring fears that the move will weigh heavily on gold bullion. Gold for April delivery at the COMEX division of the New York Mercantile Exchange settled down $7.30 at $940.50 an ounce. The contract had touched an all-time high of $958.40 on Thursday. U.S. copper futures closed down after hitting new 21-month highs on Monday as another hefty build in London warehouse stocks of the metal sparked profit-taking. COMEX copper for March delivery ended down 5.00 cents at $3.7395 a lb. It had hit a 21-month peak of $3.8495 in overnight electronic business. (Editing by David Gregorio)
