By Jae Hur
Oct. 23 (Bloomberg) -- Corn and soybeans were little changed after losing the most in more than a week yesterday as the credit crisis deepens, threatening a global recession and curbing demand for agricultural commodities.
Crude oil advanced as much as 1.6 percent today before the Organization of Petroleum Exporting Countries meets to discuss output cuts. Yesterday, oil fell 5.8 percent, corn 6.3 percent and soybeans 5.5 percent.
``Corn and soybeans prices are under pressure from the negative turn in stock market sentiment and the rallying U.S. dollar,'' said Toby Hassall, an analyst at Commodity Warrants Australia in Sydney. ``The dollar strength and the weak global demand outlook are the dominating theme, not just for the grains but for commodities generally.''
Corn for December delivery was up 1.5 cents at $3.865 a bushel in electronic trading in Chicago by 11:42 a.m. Singapore time. The price touched $3.71 on Oct. 16, the lowest for a most- active contract since November 2007. Corn has dropped 52 percent from an all-time high of $7.9925 on June 27.
Soybeans for January delivery were unchanged at $8.6475 a bushel after trading between $8.56 and $8.73. The price fell to $8.38 on Oct. 16, the lowest for a most-active contract since August 2007. Futures have fallen 47 percent from a record of $16.3675 on July 3.
``There may be some support to corn and soy prices from the less than ideal harvest conditions in the Midwest and the possibility of a bounce in crude ahead of OPEC's meeting on Friday,'' Hassall said.
Dollar Rallies
The U.S. dollar rose as much as 1 percent against the euro to $1.2728, the highest since Nov. 2006. The MSCI Asia-Pacific Index of regional shares tumbled as much as 4.8 percent to 83.53, the lowest since May 2004, sending gold, copper and other industrial metals lower.
Corn and soybeans were under pressure as Argentina, South America's second-biggest economy, may seize $29 billion of private pension funds, raising speculation that the nation is headed for its second credit default in a decade. The country is the world's second-biggest exporter of corn and third-largest supplier for soybeans.
In China, soybeans for May delivery on the Dalian Commodity Exchange fell by the 5 percent exchange-imposed limit to 3,097 yuan ($453) a metric ton.
Wheat for December delivery was up 1 cent at $5.19 a bushel by 11:54 a.m. Singapore time after losing 5.7 percent yesterday. The price touched $5.15 yesterday, the lowest since June 7, 2007. Futures have tumbled 62 percent from a record $13.495 on Feb. 27 after gaining 77 percent last year.
To contact the reporter for this story: Jae Hur in Singapore at jhur1@bloomberg.net
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