MUMBAI: Soybean price on Chicago Board of Trade (CBOT) hit a 14-month low as investors liquidated position amid the global credit crisis while slowing economies raised concern demand may fall. Strong production forecast and soft demand have been pulling down prices. Softening in crude oil prices is also having a negative impact on the soybean prices.
CBOT soybean price is ruling above $9 per bushel in electronic trade. The commodity fell 2.7% last week - the sixth decline in the past seven weeks. The contact had dropped to $8.38 on October 16 - the lowest since August 2007. It had hit a record high of $16.3675 on July 3.
Domestic soybean prices, too, extended losses this morning on expectations of weak demand especially from the exports market. National Commodity and Derivatives Exchange (NCDEX) soybean December futures contract was down 3% at Rs 1,529 per 100kg.
Meanwhile, the US Agriculture Department (USDA) forecast lower production growth. The latest report suggests that world soybean production in the year that began October 1 will total 235.74 million tonne - down from the October forecast of 238.21 million. Production in the previous year was 220.9 million tonne. Consumption is forecast at a record 234 million tonne - down from the October forecast of 235.2 million, and up from an estimated 230 million last year.
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