Soybean futures drop on bin Laden news, Chinese demand concerns

Futures Pros – Soybean futures were down for a second day on Monday, as news that al-Qaeda leader Osama bin Laden had been killed by U.S. forces in Pakistan prompted a broad-based selloff in commodities.
On the Chicago Mercantile Exchange, soybean futures for July delivery traded at USD13.8925 a bushel during European morning trade, shedding 0.4%.
It earlier dropped to USD13.8162 a bushel, the lowest price since April 28.
President Obama announced late Sunday in an address from the White House that Osama bin Laden had been killed in a U.S.-led assault outside Pakistan’s capital, Islamabad.
Bin Laden was killed after a firefight in which no Americans were harmed and U.S. forces took custody of bin Laden’s body, ending a nearly ten-year worldwide hunt for the mastermind of the September 11 attacks.
Elsewhere, China’s Federation of Logistics and Purchasing said in a report published late Sunday that the country’s purchasing managers’ index fell unexpectedly to 52.9 in April from 53.4 in March. Analysts had expected the index to rise to 54.0.
The downbeat data indicated that growth could moderate in the world’s second largest economy after the government tightened monetary policy and allowed faster gains in the Yuan.
China is the world’s largest soybean consumer and is expected to account for nearly 60% of global trade of the grain in the 2011-12 season, according to the U.S. Department of Agriculture.
Meanwhile, corn for July delivery slumped 0.84% to trade at USD7.5175 a bushel, while wheat for July delivery edged 0.05% lower to trade at USD8.0400 a bushel during European morning trade.
Corn prices came under additional selling pressure following forecasts of improved weather in the U.S. Midwest, easing concerns over the progress of the this year’s delayed plantings.