US soy falls, head for biggest quarterly decline since 2008

Soy declined, heading for the biggest quarterly drop since the third quarter of 2008, ahead of a report that may show farmers increased planting and as a recent gains slow demand for the US crop.

Futures in Chicago fell as much as 0.4%, after gaining 3.3% in the previous three days as the dollar retreated, boosting demand for US supplies.

Soy for May delivery fell as much as 4 cents to US$9.70 a bushel on the CBOT and were at US$9.7075 as of 2:02 p.m. Tokyo time. The contract has fallen 7.4% this quarter on record harvests in South America.

The oilseed market was also watching for possible moves by China, the world's biggest vegetable-oil buyer, to toughen standards on imported vegetable oil and slow shipments to absorb a domestic supply glut.

The China Chamber of Commerce of Import and Export of Foodstuffs, Native Produce & Animal By-Products, a trade body affiliated with the Ministry of Commerce, is set to brief a group of importers on proposed stricter inspection standards for imported soyoil, according to traders.

Meanwhile, soyoil for September delivery gained by as much as 1.1% to RMB7,646 (US$1,120) a tonne on the Dalian Commodity Exchange. The May-delivery contract in Chicago fell the most in more than two weeks on speculation about possible toughened import standards by China. The futures last traded 0.3% higher at 38.79 cents a pound.

Corn for May delivery slumped 0.6% at US$3.5225 a bushel, declining for a second day. The contract has fallen 15% this quarter, the steepest loss since the end of 2008.

Wheat for May delivery fell 0.4% to US$4.7025 a bushel. The contract rose 1.6% yesterday after touching US$4.6225, the lowest level since October 9. The price has declined 13.2% this quarter.