Corn, soybeans dip as economic concerns weigh

US corn futures dipped on Monday after last week's gains, while soybeans lost 0.7 per cent as concerns over Europe's economy and policy tightening by China weighed on the grain markets.

The losses in corn futures were limited as rains delayed plantings in the US Midwest and the market awaited confirmation from the US Department of Agriculture of large Chinese corn purchases. The euro dropped on Monday, after a €110bn bailout of Greece led sceptical investors wonder to which country might be next, while a third increase in China's bank reserves this year fed uncertainty about the near term outlook. The dollar index, which measures the strength of the dollar against a basket of six major currencies, was up 0.4 per cent. A firm dollar makes US commodities less attractive as a hedge against inflation. Chicago Board of Trade corn for May delivery fell 0.3 per cent to $3.65 a bushel by 0447 GMT and soy for May delivery lost 0.7 per cent to $9.83 a bushel. May wheat was little changed at $4.92 a bushel. Expectations for soybean seedings ranged from 10 per cent to 18 per cent. This time in 2009, 3 per cent of the crop was planted, and at that time the five-year average was 5 per cent.