US soybean futures on the Chicago Board of Trade closed down the 70-cent limit, down 6 percent to a nine-month low on Monday on the mounting credit crisis after lawmakers rejected a $700 billion financial-sector bailout plan, traders said.
The Dow Jones Industrial saw its biggest one-day point drop in history - down 778 points - after the surprising Congressional defeat of the bailout bill. The crisis is spreading globally as two major European banks are rescued. Wachovia Corp's bank operations are being taken over by Citigroup. The slowing economy is weakening everything, Chicago grain traders said. Ocean freight is collapsing, a sign of waning demand for physical goods.
Soybeans fell to a nine-month low. November soybeans closed 70 cents down at $10.94 a bushel. All the deferred months closed locked limit down. October soyoil, trading without limits, ended 2.70 cent per lb weaker at 44.70 cents. December soyoil closed the 2.5-cent limit down at 45.43.
The front two soymeal months closed $19.30 per ton lower - October at $295.70 and December at $301.40. Volume was moderate to light. In soybeans, an estimated 80,133 futures and 46,607 options traded. Soymeal trade was pegged at 66,817 futures and 1,460 options. Estimated soyoil volume was 69,632 futures and 2,952 options.