Market manipulation cause of commodity price rise: experts
Global financial turmoil often overrode supply fundamentals, leading to frequent and unpredictable price swings, which also affected other commodities. Continued strength in crude oil prices and further dollar weakness had an impact. Ocean freight rates initially strengthened further before moving down on reports of possible reduced industrial activity in China ahead of the Olympic Games.
Global wheat prices were above $440 a tonne on March 27, after peaking to over $520 a tonne. IGC forecasts that global grain output in 2008 would be 1,694 tonne, an increase of 32 million tonne.
World wheat production would be at 646 million tonne, an increase of 42 million tonne over the previous year, due to a 2.5% increase in area under cultivation. Global prices