Corn, Soybeans Drop as Lower U.S. Exports Signal Waning Demand

By Sungwoo Park

Dec. 5 (Bloomberg) -- Corn extended losses, falling to a 15- month low, on signs the global economic slump is cutting demand for grain from the U.S., the world’s largest exporter.

A slowing world economy has reduced demand for raw materials with consumers curbing spending and credit restrictions hampering imports. U.S. exporters sold about 387,000 metric tons of corn in the week ended Nov. 27, down 17 percent from a week earlier and 10 percent below the four-week average, the U.S. Department of Agriculture said yesterday in a report.

“U.S. exports dropped sharply, which shows demand is actually falling,” said Chris Yoo, a manager in global commodities at Samsung Futures Inc. in Seoul. “A global economic recovery may come later than expected.”

Corn for March delivery fell as much as 5.25 cents, or 1.6 percent, to $3.2875 a bushel on the Chicago Board of Trade, the lowest price since August 2007. Futures traded at $3.2925 a bushel at 11 a.m. Seoul time. Corn has fallen 59 percent from a record $7.9925 on June 27.

Soybeans for January delivery sank as much as 7 cents, or 0.9 percent, to $8.04 a bushel, the lowest since August 2007, and last traded at that level. The most-active contract has fallen 51 percent from a record $16.3675 on July 3.

U.S. export sales of soybeans tumbled 54 percent to about 359,800 tons last week, a low for the marketing year began on Sept. 1, according to the Department of Agriculture. Wheat exports fell to 207,576 tons, the smallest total since the end of May.

Wheat for March delivery declined 3.75 cents, or 0.8 percent, to $4.8225 a bushel after earlier touching $4.805, an 18-month low. The price is down 64 percent from a record $13.495 in February.

To contact the reporter on this story: Sungwoo Park in Seoul at spark47@bloomberg.net.