There seems to be plenty of evidence in the news this week how supply and demand can affect commodity prices.
Oil Trades Near a One-Week High After U.S. Stockpiles Decline
Dec. 16 (Bloomberg) — Crude oil traded near a one-week high after a government report showed U.S. stockpiles declined the most since 2002 and refiners boosted fuel output in the world’s biggest crude consumer.
China Corn Imports May Rise to Record, U.S. Group Says
Dec. 16 (Bloomberg) — China may boost corn imports to a record next year as the U.S., the world’s biggest grain exporter, potentially faces increased competition from rival supplier Argentina, the U.S. Grains Council said.
Corn purchases may grow fivefold from 1.5 million metric tons this year “to upward of” 7.4 million tons in the 2011 calendar year, Thomas Dorr, president of the industry group, said in an interview in Beijing. The group in July forecast imports of 5.8 million tons.
India to Review Sugar-Export Plans as Output Rebounds
Dec. 16 (Bloomberg) — India, the world’s second-biggest sugar producer, plans to review its export policy in January amid projections that output will top domestic demand for the first time in three years. (MartinKronicle: it will take India 9 more months to figure out who to bribe and pay off before they export any sugar.)