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September 5, 2012

Commodities Roundup: August 2012


Heat and drought continue to be the story for commodities in late summer. According to Euromonitor's Senior Food Analyst, Francisco Redruello, the lackluster corn crop is the root of high prices for grain and powdered milk, High corn prices due to a small harvest means farmers will turn to low grade wheat for feed and ethanol will use sugar cane instead of corn. This, in turn, drives prices for grain and sugar cane up. 

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