Jan. 6 (Bloomberg) -- Soybeans fell, capping the biggest two-day drop in six weeks, on speculation that a faltering global economy will damp prospects for commodity consumption. Corn recorded a weekly decline.
Christine Lagarde, the managing director of the International Monetary Fund, said today that the global economic outlook “is quite gloomy” amid Europe’s “escalating” debt woes. Soybeans posted the first weekly drop since in a month, partly on signs that weather conditions will improve in Brazil and Argentina, bolstering crops.
“Demand is weak,” Anne Frick, the senior oilseed analyst at Jefferies Bache Commodities LLC in New York, said in a telephone interview. “There’s still time for rain to improve crop yields in South America” after dry weather in the past month threatened to reduce yields, she said.
Soybean futures for March delivery fell 1 percent to close at $11.965 a bushel at 1:15 p.m. on the Chicago Board of Trade. In two days, the price dropped 2.7 percent, the most since the end of November. The oilseed fell 0.9 percent this week.
Corn futures for March delivery were unchanged at $6.435 a bushel in Chicago. The grain fell 0.5 percent this week after a two-week gain of 11 percent.
Most of Argentina and southern Brazil will get as much as 1.5 inches (3.8 centimeters) of rain beginning Jan. 9, World Weather Inc. in Overland Park, Kansas, said in a report.
Corn is the biggest U.S. crop, valued at $66.7 billion in 2010, followed by soybeans at $38.9 billion, government data show.
--Editors: Patrick McKiernan, Tom Galatola
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