US soybean and corn futures fell more than 2 percent to hit a one-week low on Monday, tracking a broader decline in commodities amid financial market concerns as US lawmakers got ready to vote on a $700 billion rescue package.
Congressional leaders from both parties said they had reached a tentative agreement, but questions abound as to whether the rescue plan would restore confidence to shaky markets and head off a deep recession. "The dollar is strengthening and oil is coming down - all these factors are bearish for grains," said Kazuhiko Saito, a strategist at Interes Capital Management Co in Tokyo.
"The worry about the economy will continue to put downward pressure on grains." By 0633 GMT, November soybean was down 2.32 percent to $11.37 a bushel, while December corn fell 2.16 percent per bushel. Saito said December corn could drop to a low of $5.20 per bushel and November soybeans to around $11.00 per bushel this week. "Corn and soybeans will lose more value as harvests will be starting in October."
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