The price of wheat and soybeans fell this week, at least briefly, offering a bit of hope to food companies who have struggled to pay far higher costs for the ingredients needed to make their goods.
The price drop was mainly due to speculators leaving the market after the dollar gained against the euro. The value of the dollar rose after the Federal Reserve on Wednesday seemed to signal a possible pause in interest rate cuts.
Wheat futures fell below $8 a bushel for the first time in months. Soybeans dropped as well, helped by wet weather in the Midwest which led farmers to say they may plant more soybeans and less corn.
Both drops didn't last for long. Wheat for July delivery closed at $8.05 a bushel on the Chicago Board of Trade Friday.
Soybeans plunged on Monday to below $13 a bushel, but had gained slightly by Friday, settling at $13.0725 a bushel on the CBOT.
Even though prices crept up by the end of the week, the dip was good news to food makers who have been hoping for a decline in commodity costs. The high cost of wheat has been taking a chunk out of profits at pizza maker and bread makers, while high soybean prices have helped lead to lower profits at meat producers. Soybeans are used to make animal feed so when prices rise, farmers must pay more to keep cows, chickens and pigs fed.
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