Dow Jones Indices Analytics - Ag Markets Lead July Gains
By Dow Jones & Company - Mon Aug 06 11:12:00 CDT 2012 CT
Related Keywords: Tool & Analytics
Dow Jones Indices Analytics – Ag Markets Lead July Gains

U.S. drought fuels rally in grain prices, energy also strong

Agricultural prices led gains in Dow Jones-UBS commodity indexes during July, as severe U.S. drought fueled a record rally in corn and soybean futures.

Corn rose nearly 23% last month, followed by a gain of 14% in wheat and 13% in soybeans, Dow Jones-UBS said in a report. Energy prices were also strong, with natural gas up 12%, gasoline up 11.5% and Brent crude oil up 7.5%. The Dow Jones-UBS agricultural sub-index rose 14.3% during July, helping lift the broader commodity index 6.5%.

Among declining commodities, nickel fell 7.4%, lean hogs dropped 4.1% and zinc declined 3%.

Over the next two months, roll periods take place Aug. 7-14 and Sept. 10-17. During August, all energy and industrial metals in the Dow Jones-UBS indexes are rolling contracts from September to November 2012 or later, with the exception of Brent crude. Coffee, corn and wheat are also rolling contracts from September to December.

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