NEW YORK, July 26 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
(Reporting by Barani Krishnan; Editing by Bob Burgdorfer)