Corn fell to a one-week low in Chicago on concern the loss of the U.S.’s AAA credit rating will sap a weakening recovery and erode demand. Soybeans reached the lowest price in almost five months.
The S&P GSCI Spot Index of raw materials retreated to the lowest level since December. The MSCI World Index of shares dropped for a 10th day and oil sank below $80 a barrel in New York.
“It’s definitely the broader economic weakness we’re seeing” weighing on the market, Erin FitzPatrick, an analyst at Rabobank International in London, said by phone. “Any of the underlying fundamentals are being overshadowed by the broader market.”
Corn for December delivery slid 10.75 cents, or 1.6 percent, to $6.7525 a bushel by 11:25 a.m.London time on the Chicago Board of Trade. Prices reached $6.6875, the lowest level since Aug. 1. Soybeans for November delivery fell 11 cents, or 0.8 percent, to $13.005 a bushel after touching $12.82, the lowest price since March 16.
“It’s all about the gloomy economy driving stocks and commodities lower,” said Hiroyuki Kikukawa, general manager of research at IDO Securities Co. Still, the U.S. corn crop’s poor condition following a heat wave in the Midwest gave some support to the market, he said.
About 60 percent of corn in the top 18 producing states was in good or excellent condition as of Aug. 7, down from 62 percent a week earlier and 71 percent a year ago, the U.S. Department of Agriculture said yesterday in a report. About 93 percent of the plants were reproducing, up from 83 percent the previous week, the USDA said.
Crop Conditions
“In the case of corn, we did see that conditions in the U.S. continue to deteriorate,” Rabobank’s FitzPatrick said. “Weather needs to improve in the U.S. Fundamentals still remain fairly tight.”
An estimated 61 percent of the soybean crop got the top ratings, compared with 60 percent a week ago and 66 percent a year earlier. About 87 percent of the plants were flowering, up from 77 percent the previous week, the USDA said.
About 96 percent of spring wheat, grown mostly in the northern Great Plains, was forming grain, compared with 90 percent a week earlier and 100 percent on average in the past five years, the USDA said. An estimated 66 percent of the crop was in good or excellent condition, compared with 70 percent a week earlier and 82 percent a year earlier.
The winter-wheat harvest was 85 percent completed, compared with 81 percent a week earlier, the USDA said. The average for the previous five years was 91 percent.
Wheat for December delivery slid 7.25 cents, or 1 percent, to $6.875 a bushel after reaching $6.8175, the lowest price since July 26. Milling wheat for November delivery traded on NYSE Liffe in Paris fell 2.75 euros, or 1.4 percent, to 187.50 euros ($267.54) a metric ton
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