June 15 (Bloomberg) -- Corn fell, extending a slide to a four-week low, and soybeans declined on bets that the sluggish economy will curtail demand for food, animal feed and biofuel.
Industrial production in the U.S. rose less than forecast in May and confidence among U.S. homebuilders slumped in June to the lowest in nine months, government and industry reports said today. Last week, output of ethanol, made mostly from corn, fell 3.8 percent, the biggest drop since mid-April.
“The economic news is showing a slowdown in growth, and that is reducing investment demand in the grain markets,” said Greg Grow, the director of agribusiness for Archer Financial Services Inc. in Chicago.
Corn futures for December delivery fell 15 cents, or 2.2 percent, to $6.70 a bushel at 11:24 a.m. on the Chicago Board of Trade. Earlier, the price touched $6.6775, the lowest for the most-active contract since May 12.
Soybean futures for November delivery dropped 3 cents, or 0.2 percent, to $13.6075 a bushel, the contract’s fifth straight decline. The U.S. government said last week that reserve supplies before the next harvest will rise as export demand ebbs.
Corn is the biggest U.S. crop, valued at $66.7 billion in 2010, followed by soybeans at $38.9 billion, government figures show.
--Editors: Patrick McKiernan, Millie Munshi
To contact the reporter on this story: Jeff Wilson in Chicago at firstname.lastname@example.org
To contact the editor responsible for this story: Steve Stroth at email@example.com.