Gold tumbled by more than 15% in October, the largest plunge since February 1983, according to Bloomberg data. Oil has slumped 37% while the US Dollar Index against six major currencies gained 7.3% in October.
Bullion for immediate delivery traded at 0.8% lower at $732.62 an ounce at 10.26 am in Singapore after dropping 2.2% on Thursday. Silver for immediate delivery slumped 4.2% to $9.38 an ounce. The Reuters-Jeffries CRB Index, a global benchmark of 19 commodities, was down around 23% in October so far, also set for its largest monthly decline ever.
Wheat price on the Chicago Board of Trade (CBOT) dropped by 21% in October to below $6 a bushel, its biggest monthly fall in more than 22 years, as a gain in the dollar curbed the appeal of US supplies. Corn and soybeans headed for a fourth straight monthly loss.
Wheat for December delivery was down 1.5 cents at $5.365 a bushel in electronic trading in Chicago by 4.19 pm Singapore time after losing 4.1% on Thursday as a government report showed the pace of US exports had slowed. Wheat has fallen 60% from a record $13.495 on February 27.
World wheat production will rise 12%, to a record 683 million tonne in the year to June 2009, up from 610 million tonne in the past year, the International Grains Council said on Thursday.
Rubber futures reached a three-year low of 154.6 yen on October 28, plunging 57% from a 28-year high of 356.9 yen on June 30, when record-high oil boosted investor demand for commodities as an inflation hedge. If it was a bad October for farm commodities, it was worse for non-farm commodities, mainly base metals like copper, aluminum and zinc. Copper on the London Metal Exchange has fallen 35% so far in October and is heading for its biggest monthly drop since at least 1977, despite a 10% rise this week.
Inventories monitored by the London Metal Exchange climbed to 223,875 metric tonne on Thursday, the most since March 18, 2004. Supplies have increased 13% in 2008.
By 0638 GMT copper was down 2.5% at $4,095, following a 10% fall in the previous session that came on the heels of a 13% surge on Wednesday. Among other LME-traded metals, aluminum was down 1% at $2,040.25 a tonne, zinc fell 1.6% to $1,141, lead declined 4.5% to $1,451, nickel slipped 5.1% to $11,300, and tin fell 1.7% to $14,400 a ton as of 2.30 pm in Singapore.