US grain and soyabean futures posted double-digit losses on Monday and many other commodities posted steep declines on selling triggered by disappointing economic growth in China, with Chicago wheat headed for its biggest loss in two weeks. Commodity markets were rattled by official data showing that economic growth in China slowed in the first three months of 2013 to 7.7 percent from 7.9 percent in the previous quarter.
In a sign of this bearish outlook, large speculators cut their net long positions in Chicago Board of Trade corn and soyabean futures, leaving them with their biggest net short position in corn since June 2010. Wheat on Monday fell the most, giving up all of a 2.4 percent rise from Friday that was linked to weather worries and Chinese interest in importing US wheat.
CBOT May wheat fell 3.3 percent, or 23-1/4 cents, to $6.91-1/2 a bushel by 11:31 am CDT (1631 GMT), tumbling through key support levels at the 30-day and 40-day moving averages. May corn lost 1.7 percent, or 11-1/4 cents, to $6.47-1/4, and May soyabeans gave up 0.8 percent, or 12 cents, at $14.01 after Friday's two-week peak of $14.19. The US Department of Agriculture on Monday reported the sale of 480,000 tonnes of US soft red winter wheat to China for the new marketing year 2013/14, but the market shrugged off the widely expected sale.
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