Soyabeans fall; corn and wheat follow

US soyabean futures fell 1.3 percent and hit a one-month low on Friday as a breakdown in crude oil prices spilled over into the grain market, also erasing early strength in corn and wheat. US crude prices hit their lowest in four months on worries that the Greek debt crisis could spread and further weaken economic growth.
Weak export demand for soyabeans and benign US crop weather added pressure. "It's mass liquidation in crude oil and grains," said Joe Bedore, Chicago Board of Trade floor manager for Intl-FC Stone. "When soyabeans couldn't muster a rally early, corn turned weak too. It's just liquidation and probably will continue for a couple more days," Bedore said. Corn fell 11 percent for the week, its biggest weekly drop in a year and a half, driven by fund long liquidation and profit-taking.
Spot July corn at the Chicago Board of Trade fell by close to $1 a bushel, or about 12 percent, in a five-day skid since setting an all-time high at $7.99-3/4 a bushel one week ago. The sell-off also forced out longs in corn who were faced with margin calls as the market moved against them. "Right now, the margin clerk is the one who is directing trade," said Dan Basse, president of AgResource Co in Chicago.
CBOT July corn settled down 1-1/4 cents at $7.00-1/4 a bushel, although new-crop December rose 7 cents to end at $6.60. Bear-spreading in corn remained a feature as traders rolled long July positions into forward contracts ahead of the July delivery period.
The grain markets shrugged off early support from a setback in the dollar, which fell against the euro as hopes for a new Greek aid package rose after Germany and France pulled together on a rescue approach. Wheat, like corn, turned lower to extend its slide to five days, hitting a three-month low on continuous price charts. Wheat fell more than 11 percent for the week, its biggest weekly slide since mid-March.
July wheat ended down 1 cent at $6.72-1/4 a bushel. The spot July wheat contract drew early support after the CBOT reported that commercial grain handler Archer Daniels Midland canceled 61 contracts that had been registered for delivery.
Such moves typically reflect strength in the cash market. The cancellations came amid stepped-up use for US wheat as an alternative livestock feed, in light of recent strength in corn prices. July soyabeans settled down 17-1/2 cents at $13.33 per bushel. Soyabeans have fallen for six of the last seven sessions, and ended the week down nearly 4 percent, their biggest weekly dip since early May.