Grains Fall to Nine-Year Low on Global Supply Glut, Equity Rout
- `Culmination of everything' bashes gauge for corn, wheat, soy
- Brazil weather, Argentine exports drive bearish outlook
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A measure of wheat, corn and soybean prices fell to a nine-year low as beneficial weather in Latin America boosted concerns that global supply gluts will expand, while a slump in equities dragged commodities lower.
The Bloomberg Grains Subindex fell as much as 2.1 percent to 38.77, the lowest since Sept. 15, 2006. Beneficial rain boosted prospects for crops in Brazil, and Argentina exporters are increasing shipments, partly after the government relaxed tariffs. World equities headed for the biggest drop to start to a year in at least three decades, led by a rout in China.