US soyabeans hit a two-month low on Thursday and posted their biggest monthly decline since September as investors liquidated positions on worries of slowing global economic growth and as rain fell in the top US Midwest growing region. At the Chicago Board of Trade, month-end selling also pressured wheat futures. They fell more than 1 percent as the US harvest advanced, resulting in a narrow monthly loss - the fourth straight month of declines.
Corn futures plunged 12.3 percent for May, the biggest drop in nine months. "It's the end of the month and funds always take profits," said Tim Hannagan, analyst at PFG Best in Chicago. Many commodities are under pressure from an escalating euro zone debt crisis, which has stoked investor worries over its possible impact on the global economy. Crude oil remained on pace for its worst month in two years.
"Open interest is flagging south. It's a risk-off type of business," said Don Roose, grains analyst at US Commodities in West Des Moines, Iowa. "We're in a bear market and we need something to happen for that to change." Scattered showers fell on Thursday in the western and central Midwest and more rains are forecast in the Midwest and Delta regions later this week, with the moisture needed to ensure rapid early growth of the corn and soya crops.
Soyabean futures for July delivery finished 33-1/4 cents, or 2.4 percent, lower at $13.40 per bushel, declining 10.7 percent for the month. But soyabeans and corn futures were approaching oversold conditions, according to technical charts, and could be poised for a bounce as investment funds buy back into the market at the start of a new month.
Some deferred corn contracts gained on ideas that Midwest rains will be insufficient to slow the deterioration of the developing corn crop, but July corn futures settled 4-1/4 cents lower at $5.55-1/4, near a 17-month low hit this week. "Although bears remain in control in the corn futures market right now, their hold is looking a bit tenuous amid Midwest moisture concerns," Richard Brock, analyst at Brock Associates, cautioned in a note to clients.
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