December 16, 2009

US soy prices dip to two-month low

Soy dropped as oil prices traded near a two-month low and after the prospects for South America's harvest of the oilseed climbed.

Crude oil traded near US$70 a barrel after dropping for a ninth day yesterday in New York, its longest decline since July 2001 and cutting demand for alternative fuels.

On the other hand, DTN Meteorlogix LLC forecast Brazil to harvest 65 million tonnes of soy as an El Nino weather pattern improves soil moisture.

Soy for January delivery dropped 0.3 percent to US$10.59 a bushel in electronic trading on the Chicago Board of Trade (CBOT) earlier. The contract climbed 1.9 percent yesterday, the biggest gain since November 16, on an industry report showing record US demand for soy used to make animal feed and vegetable oil.

Wheat slipped 0.5 percent to US$5.4075 a bushel, and corn dropped 0.2 percent to US$4.0775.