Forexpros – Soybean futures fell to a two-day low on Monday, as prices came under pressure amid easing concerns over crop prospects in South America and fresh fears that the euro zone’s debt crisis will spread to Italy.
On the Chicago Mercantile Exchange, soybean futures for January delivery traded at USD12.1662 a bushel during European morning trade, shedding 0.33%.
It earlier fell by as much as 0.7% to trade at USD12.1100 a bushel, the lowest price since November 3.
According to agricultural meteorologists, rains forecast to begin November 8 may boost early crop development in Brazil over the next seven days. The planting of soybean crop in Brazil, the world’s second largest exporter, is already well ahead of schedule due to strong October rains.
Soybean prices came under additional pressure after a strike by Argentine soy-processing workers at the country’s main grains port in Rosario ended by government order on Friday.
Brazil is the world’s second largest exporter of the grain, trailing only the U.S., while Argentina is the third largest shipper. Large crop prospects in South America could weigh on demand for U.S. supplies.
On Friday, the U.S. Department of Agriculture said that soybeans inspected for delivery at U.S. ports in the preceding week fell by 8% from a week earlier to a four-month low of 209,700 tonnes.
Meanwhile, commodity traders continued to eye developments out of the euro zone surrounding the region’s debt crisis.
Earlier in the day, the yield on Italian 10-year government bonds soared to a euro-lifetime high, amid open dissent within Prime Minister Silvio Berlusconi’s government ahead of a parliamentary vote on public finances on Tuesday.
Italian yields eased, while the euro pared losses amid unconfirmed reports that Berlusconi might step down.
Italy’s turmoil overshadowed an announcement by Greek Prime Minister George Papandreou saying that he would step down to allow the creation of a national unity government intended to secure international financing and avert a potential default.
Elsewhere on the Chicago Mercantile Exchange, corn for December delivery eased down 0.1% to trade at USD6.5513 a bushel, while wheat for December delivery added 0.3% to trade at USD6.3788 a bushel.
Later in the day, the U.S. Department of Agriculture was to publish its weekly crop progress report, which will provide an indication on how U.S. crops fared over the past week.
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