Corn, Soybeans May Fall as Financial Crisis Curbs Grain Demand

By Jeff Wilson

Oct. 13 (Bloomberg) -- Corn and soybeans may decline on speculation the worst financial crisis since the 1930s will reduce global growth and demand for food, fuel and animal feed.

Twenty-four of 38 traders, advisers and grain merchants surveyed Oct. 10 from Tokyo to Chicago said corn and soybeans would fall this week. Corn dropped 10 percent to $4.08 a bushel last week on the Chicago Board of Trade, the lowest weekly close in 10 months and down 49 percent from a record $7.9925 in June. Soybeans lost 8.3 percent to $9.10 a bushel, the lowest close since Sept. 11, 2007. The price is 44 percent below the record $16.3675 in July.

Last week's declines were expected by the majority of respondents surveyed on Oct. 3. Since 2004, 56 percent of the surveys were correct for corn and 59 percent for soybeans.

Weekly results: Bearish on corn: 24 Bearish on soybeans: 24 Bullish on corn: 14 Bullish on soybeans: 14

To contact the reporter on this story: Jeff Wilson in Chicago at jwilson29@bloomberg.net.