Breaking

Russian International Reserves Fall $15.7 Billion in Week to Dec. 19
Tweet TWEET

Corn, Soybeans Fall in Chicago as European Debt Crisis May Erode Demand

Corn and soybeans fell on speculation that the debt crisis in Europe will spread, damping prospects for the global economy and demand for U.S. crops.

European Central Bank President Jean-Claude Trichet said the ECB will delay the withdrawal of emergency liquidity measures and keep buying government bonds as the debt crisis creates “acute” tensions in financial markets. Yesterday, corn had the biggest gain in almost six weeks, and soybeans jumped more than 3 percent.

“The European debt problems have the markets on the defensive,” said Don Roose, the president of U.S. Commodities Inc. in West Des Moines, Iowa. “The market is void of any fresh positive news to bring in new buying after the rallies.”

Corn futures for March delivery fell 3.5 cents, or 0.6 percent, to $5.6275 a bushel at 10:30 a.m. on the Chicago Board of Trade. Yesterday, the price climbed 4.1 percent.

Soybean futures for January delivery dropped 2 cents, or 0.2 percent, to $12.81 a bushel. Earlier, the price reached $12.87, the highest since Nov. 16.

The U.S. is the world’s biggest grower and exporter of the commodities.

Corn is the largest U.S. crop, valued at $48.6 billion in 2009, government figures show, followed by soybeans at $31.8 billion.

To contact the reporter on this story: Jeff Wilson in Chicago at jwilson29@bloomberg.net

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net.

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.