US grains tumbled to fresh multi-month lows early on Wednesday as a downturn in China's manufacturing sector and the eurozone debt crisis possibly threatening Germany renewed fears over global growth. Corn futures at the Chicago Board of Trade fell to a seven-week low while soyabeans were at a 13-month low. Wheat futures fell to the lowest level in nearly five months.
Investors liquidated long positions after a preliminary PMI survey showed China's factory sector shrank the most in 32 months in November, reviving worries the country may be slipping toward a hard landing. China's economic outlook has a strong impact on grain prices because it is the world's top importer of soyabeans and a significant buyer of US corn.
Corn for December delivery dropped 2.2 percent, or 13 1/4 cents, to $5.85 3/4 per bushel as of 10:28 am CST (1628 GMT). December wheat fell 2 percent, or 12 cents, to $5.82 per bushel. Soyabeans sank to a new low for the year, with the January contract losing 1.8 percent, or 20-1/2 cents, to $11.32 1/2 per bushel. Fears about a global slowdown have unnerved the grain markets lately as traders worry it would dent demand for commodities.
The disappointing German bond sale added to concerns as it stoked fears the European debt crisis was threatening the continent's biggest economy. It was one of Germany's worst bond sales since the launch of the euro. The markets lack fresh demand from end users to support prices in the face of economic jitters. Users are waiting to make purchases until they see whether prices continue to decline, analysts said.