Silver futures prices plunged sharply Wednesday on New York's Commodity Exchange as the market continued to be burdened by abundant supplies. On other markets, oil prices declined on a market influenced by rumors; grain and soybean futures were mostly lower; gold prices fell; and livestock and pork futures retreated. Silver settled 18.4 cents 20.7 cents lower with the contract for delivery in October at $4.409 a troy ounce. The 18.8 cent plunge for the December silver contract dropped the metal to a 13-year low. ``The (reason) for the overall weakness of silver is simple. There is a lot of silver around. The supply is enormous,'' said Peter Cardillo, an analyst with Jesup, Josephthal & Co. Inc. in New York. Analysts noted that production of silver is increasing as demand from automakers and the photographic industry is decreasing. Adding to the weakness of silver is the perception it is a base metal and is prone to recession and inflation concern. ``Silver was once considered the poor man investment,'' Cardillo said. ``In the past, silver would react to international turmoil. Unfortunately, in recent years that has disappeared. It is not considered the safe haven that it once was.'' Profit-taking fueled a selloff of energy futures on the New York Mercantile Exchange in trading that saw prices influenced by rumors. Reports that U.S. troops have invaded Kuwait sent prices higher in early trading. But prices fell after the State Department denied military action was taking place, and slipped lower on rumors of the death of Iraqi President Saddam Hussein. Those rumors were also proven false. Profit-taking was the primary factor behind the drop in prices, said Andrew Lebow, an analyst with E.D. & F Man International Futures Inc. He noted there was little fresh news from the Middle East to influence the market. Light sweet crude was 41 cents to $1.71 lower with November at $38.69 a barrel; heating oil was 1.87 cents to 5.10 cents lower with November at $1.010 a gallon; unleaded gasoline was 2.70cents to 4.66 cents lower with November at 93.60 cents a gallon. Gold futures were pushed lower due to weakness in energy market, analysts said. Cardillo noted that gold has not reacted strongly to the crisis in the Middle East because producer nations continue to unload their gold supplies. Gold was $1.60 to $1.80 lower with October at $388.10 a troy ounce. Grain and soybean futures prices closed mostly lower on the Chicago Board of Trade. Corn futures were influenced by slack demand from overseas. It received some support from reports the Soviets would eventually make a purchase. Slack sales by farmers also gave a boost to corn prices. Overall, the market was pressured by forecasts the rains of the past few days will be ending. That will allow farmers to get on with the harvest, said Joel Karlin, an analyst with Research Department Inc. in Chicago. Trading was cautious in anticipation of the release Thursday of the U.S. Agriculture Department's October crop production report. Wheat was 1 cent to 3{ cents lower with delivery in December at $2.76\ a bushel; corn was a { cent to 1{ cents higher with December at $2.35{ a bushel; oats were a { cent to 1 cent higher with December at $1.23 a bushel; soybeans were 4{ cents to 9{ cents lower with November at $6.25 a bushel. Livestock and pork futures were lower in trading on the Chicago Mercantile Exchange. Pork prices were pressured by a drop in cash prices. Slack demand for beef products pushed livestock futures lower. Analysts said the market also was pressured by concerns that the U.S. economic outlook is weak. Live cattle were .37 cent to .88 cent lower with October at 79.20 cents a pound; feeder cattle were .25 cent to .85 cent lower with October at 87.70 cents a pound; hogs were .15 cent to .50 cent lower with October at 56.57 cents a pound; frozen pork bellies were 1.10 cent lower to .20 cent higher with February at 63.40 cents a pound.
