Thursday, May 6, 2010

Soybean Futures Fall on Concern Greek Debt Crisis May Spread

May 5 (Bloomberg) -- Soybeans fell on concern that the Greek debt crisis will spread in Europe, undermining the global economic recovery and reducing commodity demand.

The Reuters/Jefferies CRB Index of 19 raw materials declined, heading for the biggest-two day drop since February. The euro plunged to a 14-month low against the dollar, and global equities slumped. European Central Bank council member Axel Weber said Greece’s fiscal crisis is threatening “grave contagion effects” in the region.

“The Greek situation has pushed the dollar higher than people expected, and that brought out selling by speculators,” said Gregg Hunt, a market analyst at Fox Investments in Chicago. “It all boils down to uncertainty about the final impact that the European debt crisis will have” on the global recovery, he said.

Soybean futures for July delivery dropped 9 cents, or 0.9 percent, to $9.78 a bushel on the Chicago Board of Trade. Yesterday, the price touched $9.74, the lowest level for a most- active contract since April 15. The oilseed has dropped 6.7 percent this year.

Soybeans are the second-biggest U.S. crop, valued at $31.8 billion last year, behind corn at $48.6 billion, government figures show.