Corn Tries To Stay Afloat In Wild Financial Sea
Panic and fear overwhelm markets.
Bryce Knorr
Published: Sep 22, 2008
Sometimes, the fundamentals of supply and demand rule the markets. Other times, technicals on price charts are most important. Then, there are times like last week, when panic and fear that have nothing directly to do with agriculture overwhelm the market.
The financial meltdown on Wall Street appeared to reach a zenith last week when the collapse of Lehman Brothers, the demise of Merrill Lynch and the capitulation of insurance giant AIG caused the federal government to step in with a massive plan to rescue the nation's troubled banking industry. Investors rushed to gold, T-bills and cash, sending the Dow down to several key support areas before the government's move came Thursday afternoon. The stock market turned around sharply, helping the grain markets to move higher as well.
The economies of the U.S. and the rest of the world are not out of the woods yet. The fallout from high energy prices, rising unemployment, sagging consumer confidence, tight credit — you name it — likely will linger into 2009.
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