Chicago Grain Prices Plunge amid Fears of Global Slowdown

CHICAGO, Sept.22 (Xinhua)--Chicago grain futures all suffered a severe beating on Thursday, as more signs of global economic slowdown indicated weaker demand for grains worldwide.

The most active corn contract for December delivery dropped 35. 75 cents, or 5.2 percent, to close at 6.5 U.S. dollars per bushel. December wheat pared 33 cents, or 4.9 percent, to 6.3375 dollars per bushel. November soybean trimmed 37.5 cents, or 2.8 percent, to 12.83 dollars per bushel.

The dollar index, which gauges the greenback's strength against a weighted basket of major currencies, jumped to a seven-month high on Thursday, reducing the appeal of dollar-denominated commodities, after the Federal Reserve noted Wednesday that the U. S. economy faces "significant downside risks."

Outside the United States, Germany's and France's Purchasing Manager Indexes (PMI) in September plunged to their lowest levels since 2009. And HSBC's preliminary China Manufacturing Purchasing Managers' Index, showed output continued to contract in September, deepening investors' concerns over a broadening slowdown in the Chinese economy.

Market analysts mentioned that all these added to fears that global economy may slide back into recession, curbing worldwide demand for grains used for food, biofuel and livestock feed, increasing speculative long liquidation selling in the grain market.

In the week ending Sept. 15, U.S. export sales for corn came in at 598,100 tons, which was in line with trade expectations; U.S. export sale for wheat totaled 679,500 tons, much higher than expected. And export sale for soybean reached 404,400 tons.