Commodities added to the gains they posted in the previous sessions and they are looking frimly on their way to post the biggest rally since February. The rise in the prices came after the worst U.S. drought in more than 50 years is taking its toll on crops and after traders are speculating that further stimulus measures by central banks will increase demand for raw materials. The Standard & Poor’s GSCI Spot Index of 24 raw materials advanced 1.6% to 649.93, after touching highs of 650.91 for the session. The benchmark extended its winning streak to a seventh consecutive session, the longest such period since February 24th. Soybeans posted record highs, and wheat advanced to the highest price in almost 4 years. Coffee, soybeans and cocoa were among the biggest gainers for the day. The GSCI index is up 0.8% in 2012. At the same time the MSCI All-Country World Index has rallied 5.2%, and Treasuries has returned 2.7%. Grains traded higher as about 55 percent of the contiguous U.S. was in moderate to extreme drought as of the end of June. Soybean futures advanced 0.9% to $16.3525 a bushel on the Chicago Board of Trade, after reaching a record of $16.7375 earlier on. Corn futures skyrocketed to prices of $7.99, slightly below the record $7.9925 set in 2008.
