Tuesday, Jan. 13, 2009

The Buzz On Business

COMMODITIES DIVE AS DOLLAR GETS STRONGER: An advance in the dollar, compounded by heightened concerns about a sharp drop in demand for raw materials, sent commodity prices plunging Monday. Gold prices dipped below $820 an ounce for the first time in a month. Also Monday, the dollar gained strength against other major currencies, including the euro and the British pound, ahead of an anticipated rate cut this week by the European Central Bank. Commodities, particularly gold, are sensitive to the direction of the dollar as they are often used as a hedge against inflation and a weak greenback. Gold for February delivery dropped $34, to settle at $821 an ounce on the New York Mercantile Exchange, after falling to as low as $817.10 earlier in the session. Other precious metals prices also tumbled. March silver fell 57 cents, to $10.75 an ounce, while March copper futures fell 7.1 cents, to $1.4885 a pound.

BUMPER CROP EASES FOOD SHORTAGE FEARS: U.S. farmers delivered a bumper crop in 2008, according to a government report released Monday that eased fears of a looming food shortage but caused commodity prices to drop. Corn futures dropped 60 cents, or 7 percent, to close at $3.81 a bushel on the Chicago Board of Trade after the report was released. Soybeans also fell 7 percent, losing 70 cents to close at $9.66 a bushel. There were 12.1 billion bushels of corn grown for use as grain, down 7 percent from 2007's all-time record of 13.04 billion bushels, according to the U.S. Department of Agriculture's National Agricultural Statistics Service. The soybean crop of 2.96 billion bushels was the fourth-largest in U.S. history, up 11 percent from 2007. News of the bounty came just six months after global commodity traders pushed crop prices to all-time highs on fears that growing demand for grain and crop-based fuels like ethanol would strain global food supplies.

SALMONELLA LINKED TO PEANUT BUTTER: The salmonella bacteria that has sickened nearly 400 people in 42 states has been conclusively linked to peanut butter, Minnesota health officials announced Monday. State health and agriculture officials said last week they had found salmonella bacteria in a 5-pound package of King Nut peanut butter at a nursing facility in Minnesota. Officials tested the bacteria during the weekend and found a genetic match with the bacterial strain that has led to 30 illnesses in Minnesota and others across the country. "The commonality among all of our patients was that they ate peanut butter," said Doug Schultz, a spokesman with the Minnesota Department of Health. While the brand couldn't be confirmed in every case, the majority of patients consumed the same brand. Minnesota officials were coordinating their investigation with the Centers for Disease Control and Prevention, the U.S. Food and Drug Administration and other states. The peanut butter was distributed only through food service providers and was not sold directly to consumers. Officials are concerned the peanut butter still is being used, and urged institutions to toss it out.

BEE NEWS SERVICES

Figuratively Speaking

1, 2, 3: Ranks of Charles Prince, former CEO of Citigroup, Rick Wagoner, chairman and CEO of General Motors, and John J. Harris, chairman and CEO of Nestlé Waters, on the list of the worst corporate "Scrooges" of 2008 -- the CEOs who exhibited the worst kinds of unbridled greed and a lack of concern for others during the past year, according to Co-op America

1, 2, 3, 4, 5: Ranks of Milford Sound, New Zealand; Queenstown, New Zealand; Philipsburg, St. Maarten; Cayo Largo, Cuba; and Rhodes, Greece, on the list of top 2008 Travelers' Choice World Destinations, according to TripAdvisor's Destinations Awards

1, 2, 3, 4, 5: Ranks of Lake Tahoe; Big Sur; San Francisco; Poipu, Hawaii; and Sedona, Ariz., on the list of 2008 Travelers' Choice U.S. Destinations

JOHN MacINTYRE, UNIVERSAL PRESS SYNDICATE