Soybeans fell from a 34-year high in Chicago on speculation declining crude-oil prices may reduce demand for biofuels made from the oilseed.
Crude oil dropped as much as 2.5 percent on heightened speculation OPEC will increase output to cap prices and bolster global demand. Soybeans yesterday reached $11.14 a bushel, the highest since July 1973. The 14-day relative strength index, a measure used by some traders to gauge price direction, rose above 70, signaling prices may fall.
``The market was extremely overbought,'' Kenji Kobayashi, an analyst at Kanetsu Asset Management Co., said by phone from Tokyo. ``A fall in oil and stocks put pressure on soybeans.''
Soybeans for January delivery lost as much as 8 cents, or 0.7 percent, to $10.9575 a bushel in after-hours electronic trading on the Chicago Board of Trade. The contract traded at $10.97 at 1:42 p.m. London time....MORE