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UPDATE 4-US corn, soybeans, rice slide on profit-taking

Thu Apr 24, 2008 10:58pm IST
 
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(New throughout; updates prices, changes byline changes dateline from previous TOKYO/PARIS)

By Christine Stebbins

CHICAGO, April 24 (Reuters) - U.S. grain and oilseed markets dived on Thursday as the weakness in other commodities spilled over to Chicago markets and spurred profit taking, traders said.

"The outside markets are negative. The dollar is stronger, gold and crude oil are weaker -- eroding support," said Mario Balletto, analyst with Citigroup in Chicago.

The softness was reflected in the Reuters-Jefferies CRB Index .CRB of 19 commodity markets, sliding nearly 2 percent on Thursday to 414 points -- but still near its historical high of above 422 points -- due to the commodity boom.

Commodities have been on fire this year, spurred by the world's demand for food and the expanding biofuel industry that uses grains and oilseeds to produce ethanol and biodiesel.

Chicago Board of Trade May soybeans SK8 slid 20 cents to $13.52 per bushel, May corn CK8 was down 12-3/4 cents at $5.75 and May wheat WK8 was down 14-3/4 cents at $8.03 past noon CDT (1700 GMT).

Even the red-hot rice market tumbled. The July contract RRN8 slid its maximum trading limit, 50 cents per hundredweight to $24.32 after rallying to an all-time high above $25 during Asian trading hours.

CBOT rice is up about 80 percent so far this year.  Continued...

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