COMMODITIES-Soy down most in a week since 2009; gold up 3rd week

NEW YORK, July 26 Sat Jul 27, 2013 2:20am IST

NEW YORK, July 26 (Reuters) - U.S. soybeans fell again on Friday to post their sharpest weekly loss since 2009 as a giant crop loomed and gold slipped too although it still recorded a third straight week of gains as investors grew more confident the fed was not yet ready to scale back its stimulus program.

Crude prices fell on Friday and were down for the week on fear of waning demand from China as the No. 2 oil consumer, worried about excess manufacturing capacity, ordered its factories to reduce output.

Copper also fell on concerns of slowing demand by China, the largest buyer of the metal.

Robusta was one of the few commodities that bucked the bearish trend, rallying as exchange-monitored stockpiles of the London-traded coffee hit a four-year low.

The 19-commodity Thomson Reuters-Jefferies CRB index fell 0.9 percent for the session and 2.2 percent for the week. It was weighed down mostly by the losses in soybeans and U.S. crude, its main component.

Soybeans, and their derivative soymeal, have come under selling pressure as a record-large U.S. soy harvest approaches. Soybeans are usually crushed to make soymeal.

The front-month contract for U.S. soybeans, August settled at $13.49-3/4 a bushel on the Chicago Board of Trade, down 0.4 percent on the day and down nearly 10 percent for the week.

Reuters charts showed it was the sharpest weekly decline for a front-month soybeans contract since a drop of more than 15 percent in early September 2009.

Soymeal's front-month August contract was down 4 percent on the day. For the week, it fell 11 percent, the most since a 14 percent weekly drop in September 2009.

The spot price of gold was above $1,332 an ounce late afternoon in New York, down slightly on the day. For the week, it rose 2.8 percent and was up three weeks in a row the first time since March.

Gold's weekly gain was helped by speculation the U.S. Federal Reserve, at its meeting next week, will drive the dollar down further with statements that indicate less tapering of its monetary stimulus than initially expected.

The dollar hit a five-week low on speculation that the Fed's Federal Open Market Committee will emphasize next week its intention to keep interest rates low for longer.

"It is understandable that money managers be wary of any slight change in verbiage from the Fed in these low interest-rate days," said Carlos Perez-Santalla at brokerage Marex Spectron. (Reporting by Barani Krishnan; Editing by Bob Burgdorfer)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Popularity Poll

REUTERS SHOWCASE

Record Highs

Record Highs

Nifty touches record high; software stocks gain.  Full Article 

New Adviser

New Adviser

Arvind Subramanian likely to be chief econ adviser.  Full Article 

Pricing Mechanism

Pricing Mechanism

Govt sets up a four-member panel to re-examine gas pricing.  Full Article 

Royalty Rates

Royalty Rates

India to hike iron ore royalty, miners may struggle to pass on extra cost.  Full Article 

Commodities

Commodities

Gold near two-month low; set for weekly drop on interest rate fears  Full Article 

Reuters Exclusive

Reuters Exclusive

Apple iPhone 6 screen snag leaves supply chain scrambling   Full Article 

Helping Regional Mills

Helping Regional Mills

Govt raises sugar import duty to 25 pct from 15 pct.  Full Article 

Curbing Risks

Curbing Risks

RBI to lower ceiling on bank loans to a single corporate group.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage