US grains plunged early on Wednesday, with soyabean futures on pace for their worst daily losses in a month after data showed an unexpected slowdown in economic growth in top commodities importer China. Investors also locked in profits after big rallies in grains earlier this week at the Chicago Board of Trade, while volume overall was thin as markets closed in Europe for the May Day holiday.
"The economic data came in a little lower than expected, and it's hurting demand ideas," said analyst Jack Scoville of the Price Futures Group brokerage in Chicago. Growth in manufacturing in China, which imports about 60 percent of global soyabean exports, slowed in April, raising fresh doubts about the strength of the economy after a disappointing first quarter. The Chinese data as well as slowing economic growth and higher crude oil stocks in the United States sent benchmark crude oil futures down nearly 3 percent.
"You've got crude down almost $3 - that's tough to ignore," said analyst Rich Nelson of grains brokerage Allendale Inc in McHenry, Illinois. CBOT July soyabeans fell 30-3/4 cents to $13.68-1/4 per bushel, dropping sharply after notching a one-month high on Tuesday.
CBOT July wheat was down 11 cents at $7.20 per bushel, while CBOT July corn eased 3-3/4 cents at $6.46-1/4 as of 10:12 am CDT (1512 GMT). Corn futures rebounded from bigger losses earlier in the session after the US Energy Information Administration said the ethanol grind last week averaged 857,000 barrels per day, the most since June. Corn futures were also underpinned by expectations of further delays in what is already the slowest planting season in history.
Heavy rainfall and some snow across in the US Midwest will push farmers, many of whom just began planting corn this week, from the fields in the coming days. The annual Wheat Quality Council crop tour of top wheat growing state Kansas on Tuesday found yield prospects below last year in the central part of the state, while field conditions are likely to worsen as the tour moves into drought-ravaged western Kansas.
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