Tuesday, February 23, 2010

Morning markets: rain fears help crops hold gains

The danger for crop investors was that Tuesday would be one of the Turnaround variety.

Chicago-watchers say that a strong trend on a Monday is often reversed the next day, implying that its investors should brace for sharp losses today.

However, as of 07:30 GMT, weakness had yet to set in in any meaningful way, with the grains showing only marginal losses and soybeans keeping their nose above water.

The dollar was on food commodities' side, slipping a touch, and so making US exports look cheaper.

Investors are expecting the Federal Reserve to quash expectations of an imminent interest rate rise which were stoked by last week's tightening of terms in which America's central bank lends to commercial banks......more detail

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