Wheat, soybeans push commodity prices lower

MONTREAL - World commodity prices slipped Tuesday after China raised its short-term interest rates for the third time since October to cool the economy and check inflation. Wheat, copper, corn and soybeans led the way lower.

United Nations statistics show wheat has risen 76 per cent since the start of 2011 and global food prices have hit record levels. Copper has climbed sharply to set a new record last week.

Higher Chinese interest rates will raise the cost of maintaining inventories and so slow imports of many commodities, especially metals, analysts said. The surge in commodity prices has been supporting higher world stock markets.

But most precious metals, under the lead of gold and palladium, went against the trend and posted small gains.

(Source: http://www.montrealgazette.com/business/Wheat+soybeans+push+commodity+prices+lower/4244048/story.html)