Soybeans, Soyoil Drop as Lack of China Stimulus Hits Commodities

(Bloomberg) -- Futures for soybeans and soyoil slumped as a lack of fresh Chinese stimulus measures sparked selling across markets.

A hotly anticipated briefing by China’s top economic planner following the Golden Week holiday ended without new pledges to boost government spending. That sent a gauge of Chinese stocks tumbling in Hong Kong, with oil and other commodities also falling.

Soybeans for November delivery dropped as much as 2% to $10.1350 a bushel, falling for a fifth straight day. Soyoil slid as much as 4.6%, the most since July 26, following crude prices lower.

With less expected stimulus in China, all eyes are back on the supply side, following weather in South America, according to Ben Buckner, chief grains analyst for AgResource Co.

The planting pace is accelerating in Brazil and Argentina, the first- and third-biggest soy producers in the world, respectively.

“Some forecasts are wet and some are dry and the planting pace will be important as we approach mid-October,” Buckner said.