Speculators lift grain prices after bumper harvests

SPECULATORS are helping to lift grain prices off the bottom after bumper harvests. Corporate funds are rebuilding commodity holdings liquidated last summer.

With more than 35m tonnes of ‘paper’ wheat — traded in the busiest day on the Chicago market last year, these speculators play a big role in futures markets, and the real market — the US government has been prompted to suggest greater regulation of their activities, which can shove up food prices, affecting inflation.

With the US dollar recently at its lowest level against the euro in more than a year, dollar-priced commodities are attractive to non-US investors.