Forexpros – Soybean futures were down for down for a sixth day on Monday, falling to a ten-month low as growing fears over the global economic outlook raised concerns over a slowdown in global demand for the grain.
On the Chicago Mercantile Exchange, soybean futures for November delivery traded at USD12.4912 a bushel during European morning trade, dropping 0.76%.
It earlier fell as much as 1.08% to trade at USD12.2612 a bushel, the lowest price since November 29, 2010.
Fears over the global economic outlook intensified late last week after the Federal Reserve warned of “significant downside risks” facing the U.S. economy, while data showed that manufacturing activity in China contracted for the third consecutive month in September.
China is the world’s largest soybean consumer and is expected to account for nearly 60% of global trade of the grain in the 2011-12 season beginning October 1, according to the U.S. Department of Agriculture.
Meanwhile, unconfirmed speculation about possible selling by big hedge funds liquidating long positions also weighed on prices.
Soybean prices have declined in 14 of the last 17 sessions and have lost nearly 15% in September amid fears the global economic slowdown would hurt demand.
Despite the sharp pullback in prices, Wall Street investment bank Goldman Sachs maintained its bullish view on soybeans, citing a “robust outlook” for emerging market growth.
The bank expected soybean prices to average USD14.00 per bushel in 2012, “given the low level of global inventories and its leverage to emerging market income and population growth.”
Elsewhere on the Chicago Mercantile Exchange, corn for December delivery tumbled 2.59% to trade at a two-month low of USD6.6763 a bushel, while wheat for December delivery plunged 2.72% to trade at a two-month low of USD6.4838 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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