September 23, 2011 / 12:27 PM / 7 years ago

GRAINS-Soy sinks to near 10-month low on macro angst

(Updates with European trading, changes dateline from
    * Growth, debt fears persist, stalling markets rebound
    * Soybeans hit by fresh fall for oil, Latam exports
    * Soy on track for biggest weekly loss in 2 years
    * Corn fundamentals may keep floor under prices

    By Naveen Thukral and Gus Trompiz	
    SINGAPORE/PARIS, Sept 23 (Reuters) - U.S. soybeans fell to
their lowest level in almost 10 months on Friday as a G20 pledge
to preserve financial stability failed to reassure investors
rattled by the threat of economic recession.	
    Corn slipped to a 2-1/2 month low while wheat flirted with a
10-week trough seen on Thursday as both grains saw choppy
trading under the influence of erratic equity markets that saw
economic fears vie with bargain-hunting. 	
    "We are seeing that the macro picture is taking over the 	
fundamentals -- all markets are coming off, so it is no 	
different for grains," said Lynette Tan, an investment analyst 	
at Phillip Futures in Singapore.  	
    "People are averse to risk, we need to tide over this crisis
before we see a return to fundamentals."  	
    For the week, soy Sc1 is on course to rack up its biggest 	
loss since September 2009, while corn Cc1 and wheat Wc1 are 	
falling for a fourth straight week.  	
    Chicago Board of Trade November soybeans fell 1.56 to 	
$12.63.00 a bushel by 1144 GMT, after hitting a low of $12.50 a
bushel, a level not seen since Dec. 1, 2010, for a front-month 	
    Crude oil CLc1, a key driver of oilseed markets like
soybeans, saw fresh losses after an earlier bounce. 	
    The soybean market faced additional pressure as ample South 	
American supplies weighed on the prospects of U.S. new-crop 	
    China, the world's top importer, is expected to ship larger 	
volumes of soy imports from Brazil and Argentina in the fourth 	
quarter, which is typically the peak marketing season for the 	
United States.        	
    CBOT December wheat was up 0.67 percent at $6.38 a
bushel after rising more than 1 percent in earlier trade, while
December corn lost 0.96 percent to $6.43-3/4, a lowest
level since July 1. 	
    U.S. futures faced additional pressure from the dollar,
which trimmed an earlier fall against a basket of currencies to
hover around a seven-month high. 	
    Corn has also been facing demand pressures, with some signs
of high prices this year curbing use.	
    The International Grains Council on Thursday cut its 	
forecast for global maize production in 2011/12, reflecting 	
diminished prospects for the U.S. crop, but also trimmed the 	
outlook for consumption as high prices begin to curtail demand. 	
    Still, there was underlying fundamental support for grains,
with U.S. corn supplies projected at a 16-year low and dry
weather threatening wheat plantings in the United States and
also Ukraine. 	
    Operators were also anticipating the strong pullback in
prices this month to trigger more demand.	
    "It is certainly going to start interest among consumers -- 	
last night we saw Egyptians back in the market taking a big 	
chunk of the Russian wheat once again," said Luke Mathews, 	
commodities strategist at Commonwealth Bank of Australia in 	
    "But the question consumers are asking themselves is, 'What 	
is around the corner? Are we starring over the edge of another 	
global financial crisis type of event?' and if that was to 	
evolve, you will see further losses."  	
    Egypt, the world's largest wheat importer, bought 240,000 	
tonnes of Russian wheat on Thursday. 	
 * Prices as of                                             
 1144 GMT                                          
  Product       Last    Change   Pct Move End 2010 
 Ytd Pct 
 Paris wheat    189.50    -2.50    -1.30   252.20  
 London wheat   155.50    -1.05    -0.67   199.00  
 Paris maize    196.00    -3.00    -1.51   235.00  
 Paris rapeseed  34.00    -3.50    -0.80   497.25  
 CBOT wheat     638.00     4.25    +0.67   794.25  
 CBOT corn      643.75    -6.25    -0.96   629.00  
 CBOT soybeans 1263.00   -20.00    -1.56  1393.75  
 CBOT rice       16.65    -0.02    -0.12    14.00  
 Crude oil       78.51    -2.00    -2.48    91.38  
 Euro/dlr         1.34     0.00    -0.10     1.34  
 (Editing by James Jukwey)
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