Reasons for Crashing rice, rubber, corn, wheat, soya bean and palm oil prices?
What are the Reasons for Crashing rice, rubber, corn, wheat, soya bean and palm oil prices?
Prices are crashing internationally
What is the reason for that? Thanks
Answers
474 points
spider348 answered one year ago …
In my opinion, like for oil, it was speculative buying. Not that is new or anything but of recent years the markets have developed new vehilces to involve the public in commodities investing. ETF's are one vehicle that "Joe six pack" (sorry I grabbed that from the headlines) is able to join in on the fun where in the past , commodities were primarily 'owned' skilled professional traders in the derivatives markets. I think it is just a result of more crowd participation than ever before.
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379 points
dustbusterz answered one year ago …
well,for the rice, corn ,wheat,soya, and palm oil, i think lots has to do with the GLOBAL RECESSION,causing weaker demand ,but also the crashing cost of fertilizer as well.
As for the rubber, I think its mainly due to weaker car sales ,and less driving , so weaker demand for rubber. Also as far as rubber, many things are manufactured with rubber and manufacturing has crashed big time as well.
