Markets Fall on London Bombings, Be Prepared for Heavy Liquidation Today

A suspected terrorist attack on the London transportation system sent financial and commodity markets into a tailspin early this morning. Farm Progress market analyst Arlan Suderman says prices may stabilize as more as known, but be prepared for heavy liquidation today.

Near simultaneous explosions went off at five London subway stations and a double-decker bus, according to wire reports. The latest reports indicate that two people have died and another 300 are injured.

Britain Prime Minister Tony Blair called the attacks "barbaric." It is expected that the bombings coincide with the G-8 summit, which started Wednesday in Scotland. Blair left the summit early to return to London after hearing of the bombings.

In a statement on behalf of the Group of Eight leaders, Blair says, "We will not allow violence to change our societies or our values nor will we allow it to stop the work of this summit. We will continue our deliberations in the interest of a better world."

Key issues in the G-8 talks focus on tackling poverty in Africa and global warming. President Bush also pushed again the need for the European Union and the United States to work together in ending agricultural subsidies. Blair has been advocating the EU drop its subsidies and plans to urge G-8 leaders at the summit to do the same.

Secretary of Agriculture Mike Johanns has also joined in with President Bush this week to push for an end to ag subsidies to advance ongoing World Trade Organization trade talks.