US soybean futures on the Chicago Board of Trade plunged to a 13-month low on Wednesday as the euphoria over governments' efforts to ease the credit crisis was overshadowed by recession concerns, traders said. Fears of economic slowdown, including weaker demand for commodities, weighed on CBOT grains and oilseeds along with financial markets.
The Dow industrials fell 500 points by the CBOT close - falling further later to end down 733 points. One sign of waning demand was the weakness in the Baltic Exchange's freight index, which tracks shipping costs of coal, iron ore and grains to a 5-1/2 year low.
November soybeans ended 38 cents weaker at $8.58 a bushel, after falling to $8.46-1/2 - the lowest spot price for soybeans since September 2007. December soymeal settled $3 per ton weaker at $244.50. December soyoil ended 2.47 cents lower at 35.53 cents per lb. Back months closed 2.49 to limit-down 2.5. Soyoil price limits expand to 3.5 cents from 2.5 cents after limit-down move on the close.
Commodity funds sold 4,000 soybean contracts, 1,000 soymeal and 3,000 soyoil. USDA confirmed the sale of 120,000 tonnes of 2008/09 soybeans to unknown within the past day. USDA reported 51 percent of US soybean crop was harvested, below the 61 percent five-year average.
Showers in eastern Midwest on Wednesday to slow harvest of corn and soy, but no significant concerns from rainfall and/or cold weather. Overnight soyoil deliveries against the expired October contract were light at 34 lots. But October soymeal deliveries were large at 314 but there were two big stoppers: the Kottke house account took 163 and a Newedge customer stopped 114.
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