Soyabean futures at the Chicago Board of Trade tumbled early on Tuesday, pressured by fears that China would put controls on its markets to slow growth, traders said.
Those fears sent shivers across the world. Chinese and US stock markets went into a tailspin. Commodities markets, including crude oil and gold, also tumbled, then began recovering by mid-morning.
"I'm worried about these Chinese comments. If China is going to slow its economy with an austerity programme that means they buy less commodities - iron ore, steel, concrete and petroleum. But it bleeds over to the other markets. China is real important to what we do here," said Roy Huckabay, analyst with The Linn Group in Chicago.
China is the world's top buyer of soyabeans and the biggest US soya customer. Selling escalated early when sell stops were hit across the soya complex. Commodity funds sold 6,000 soyabean contracts by the midsession, traders said.
March soyabeans were down 11 cents at $7.67-3/4 per bushel, after falling to $7.56. The deferred months were 6 to 11-1/4 cents lower. March soyaoil was 0.40 cent per lb weaker at 30.31 cents, with the back months down 0.31 to 0.57. March soyameal was $3 per ton lower at $224.60 per ton, with deferreds down $1.50 to $3.10.
There was some positioning before first notice for March deliveries on Wednesday. Given the weakness in US cash markets, traders said, big deliveries were expected in the soya complex - 1,000 to 2,000 soyabeans, 2,000 to 3,000 soyaoil and 200 to 400 soyameal.
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