Corn futures fell moderately Monday morning in response to investor concerns about the global financial situation. A proposed deal to alleviate the economic crisis in Cyprus (which has been caught up in the Greek situation) includes a direct levy upon the savings accounts of Cypriot citizens. Investors worry about the precedent this would set for governments everywhere, so they are apparently reducing their holdings in global financial and commodity markets. May corn fell 6.5 cents to $710.5/bushel late Monday morning, while December dipped 4.0 cents to $5.5775.
The idea that governments and institutions could directly tap consumer accounts with financial institutions, as implied by the proposed Cyprus bailout deal, sent the financial markets lower Monday morning. The equity markets led the way lower, with most commodities following them downward. Soybean futures certainly were not immune to the downward pressure, despite news that frost may have diminished the yield potential of some Argentine bean fields over the weekend. Talk of diminished demand did not help the situation. May soybeans sank 21.5 cents to $14.045/bushel in late-Monday morning action, while May soyoil skidded 0.66 cents to 49.25 cents/pound, while May meal slumped $5.7 to $413.1/ton.