Wheat Futures Rise On Canadian Export Suspension
Canadian embargo on two wheat grades boosted Chicago Board of Trade prices as futures advanced over 2 cents for March to 2.69 a bushel. Soybeans climbed about 4 cents with meal up 1.50 a ton and oil barely moved. Corn edged mixed, oats higher, amid holiday trading and port congestion.
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November prices rise as inflation jitters resurface
Washington AP reports consumer prices climbed 3 percent in November the sharpest rise in five months. Food costs surged 6 percent and auto prices jumped 1.5 percent led by 1972 models and imports. Gasoline and motor oil rose 8 percent while fuel and coal fell 0.8 percent. Mortgage rates eased, medical care costs rose 5 percent, and overall buying power fell as wages lagged inflation.
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Carter Pledges Dollar Defense Measures in Speech
President Carter vowed to shield the dollar from unfair attacks in currency markets and outlined interim oil related measures. He cited the large U.S. deficit and high oil costs as drivers of dollar weakness and said intervention would counter disorderly market conditions. He also aimed to boost oil production at Elk Hills and Prudhoe Bay and expand pipeline capacity to move oil east.
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Dollar Edges Upward On European Markets
The battered dollar edged higher amid listless pre holiday trading in European markets. Gold rose to 160.375 in Zurich and 150.40 in London while the dollar held firm versus the franc but weakened against the Swiss and German currencies. Central banks’ intervention gave a brief lift but traders see the dollar’s decline resume after the holidays.
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