News Summary: Commodities fall on European debt

AP News
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Posted: Jul 23, 2012 3:45 PM
News Summary: Commodities fall on European debt

STRUGGLING SPAIN: Spain's financial struggles drove down prices for most commodities. The country's economy contracted in the second quarter which drove up borrowing costs. Investors are worried that Europe's overall problems will continue to dampen demand.

STREAK ENDS: The persistent concerns about Europe's crisis also ended a streak of record-setting highs for corn and soybeans. Prices have risen for weeks after hot, dry weather damaged both crops.

DOLLAR'S IMPACT: Commodities also were hurt by a stronger dollar. Since commodities are priced in dollars, a stronger dollar makes them more expensive for buyers who trade in other currencies.