Corn, wheat, soybeans drop in Chicago

LONDON, May 6 (Bloomberg): Corn, wheat and soybeans fell in Chicago as investors sold commodities on speculation higher prices and weaker economic growth will curb demand for raw materials, including those used to make food. Corn surged 88 per cent in the past year, wheat gained 49 per cent and soybeans rose 38 per cent as demand increased and stockpiles dwindled, pushing up food costs that were partly blamed for riots in the Middle East and North Africa. Investors are ignoring wet weather that's slowing planting in the US, which supplies 29 per cent of the world's corn. Commodities traders are in a "panic" to sell contracts, said Michael Shaoul, chairman of Marketfield Asset Management in New York, which oversees $1 billion. Corn and soybeans headed for the biggest weekly declines since March as the Standard and Poor's GSCI Index of 24 raw materials fell for a fifth day, the longest streak since August. "It's a fund selloff," said Andrew Dewing, owner of Dewing Grain in Aylsham, England. "Lots of the consumers are not buying because, historically, prices have never been this high going forward. They're not going to book forward at these prices." Corn for July delivery dropped 10.25 cents, or 1.4 per cent, to $6.985 a bushel by 1:15pm London time on the Chicago Board of Trade after touching $6.91, the lowest price since March 31. The grain has lost 7.7 percent this week, the most since the week ended March 11. Soybeans for July delivery fell 3 cents, or 0.2 per cent, to $13.1875 a bushel. The oilseed touched $13.065 a bushel, the lowest level since March 17, and is down 5.4 per cent this week. Wheat for July delivery rose 1 cent to $7.55 a bushel after falling as much as 1.9 per cent to $7.40, the lowest price since March 31. The grain has tumbled 5.8 per cent this week, the most in three weeks. Milling wheat for May delivery traded on NYSE Liffe in Paris dropped 3 euros, or 1.2 per cent, to 241.25 euros ($350.92) a tonne.