Corn, wheat, soybeans drop
Wednesday, 26 May 2010
LONDON, May 25 (Bloomberg): Corn, wheat and soybeans declined after the seizure of a Spanish bank stoked investor concern that Europe's debt crisis may hurt the global recovery, strengthening the dollar and making US crop supplies more expensive.
Corn for July delivery fell for the first time in four sessions, dropping 1.4 per cent to $3.66 a bushel at 10:07 a.m. London time. Wheat declined 1.1 per cent to $4.625 a bushel and soybeans dropped 1.2 per cent to $9.29 a bushel.
The dollar gained for a second day against a basket of six major currencies after Spain's central bank seized CajaSur, a savings bank in Cordoba that refused a merger plan. The International Monetary Fund urged Spain to overhaul more ailing banks. Stocks, metals and oil also slumped today.
"We've seen risk aversion and US grains have come under pressure," Jonathan Barratt, managing director at Commodity Broking Services Pty. in Sydney, said by phone. "As a result of that, the bullish tone that we've had has taken a back seat."
Corn for July delivery fell for the first time in four sessions, dropping 1.4 per cent to $3.66 a bushel at 10:07 a.m. London time. Wheat declined 1.1 per cent to $4.625 a bushel and soybeans dropped 1.2 per cent to $9.29 a bushel.
The dollar gained for a second day against a basket of six major currencies after Spain's central bank seized CajaSur, a savings bank in Cordoba that refused a merger plan. The International Monetary Fund urged Spain to overhaul more ailing banks. Stocks, metals and oil also slumped today.
"We've seen risk aversion and US grains have come under pressure," Jonathan Barratt, managing director at Commodity Broking Services Pty. in Sydney, said by phone. "As a result of that, the bullish tone that we've had has taken a back seat."