Corn, soybeans decline as weaker crude may curb biofuel demand

Corn and soybeans declined for the first time in three days on speculation that declining oil prices will curb demand for alternative fuels. Crude oil earlier dropped as much as 0.6 per cent after a US Energy Department report showed that supplies surged at the delivery point for the US benchmark grade as imports climbed to the highest level since September. “Lower crude prices kicked in and had a negative impact,” Toby Hassall, a commodity analyst with CWA Global Markets Pty, said by phone from Sydney. We’ve also “got a bearish supply- side situation,” Hassall said. Soybeans for July delivery dropped 0.3 per cent to $10.03 a bushel on the Chicago Board of Trade at 3:55 pm in Singapore. Corn for July delivery declined 0.5 per cent to $3.6725 a bushel at the same time. Good harvests of soybeans and corn are expected from South America, and the US may also produce large crops of both commodities if favorable weather persists, Hassall said Wheat for July delivery fell 1.1 percent at $4.9425 a bushel, extending this year’s losses to 13 per cent.