COMMODITIES-Rout extends to second day, hitting oil, soybeans

* Investors stay sharp on dreary US economy, Europe woes
* Brent crude down nearly 2 pct, off 4 pct on week
* Soybeans hit one-month low, down 6 pct in 2-day rout
* Platinum dives as striking S.African miners accept new pay
* Copper steadies but outlook remains weak

By Barani Krishnan
NEW YORK, Sept 18 (Reuters) - Commodities slumped on Tuesday
for a second day as nagging economic problems in the United
States and Europe made investors cautious about the demand
outlook for oil, metals and crops at prices that had spiked on
stimulus efforts by central banks.
Euphoria over the Federal Reserve's enlarged $40-billion
per-month bond-buying program -- announced last Thursday -- had
fueled a run-up in many commodity markets. But sentiment has
fizzled in the absence of fresh evidence of U.S. recovery.
In the euro zone, pressure grew on Spain to request aid and
test a European Central Bank bond-buying program. The dollar
jumped against the euro, further weighing on
commodities priced in the U.S. currency.
Crude oil fell nearly 2 percent, down more than 4 percent so
far this week after Monday's heavy liquidation.
Soybeans showed a 6 percent decline for the week-to-date.
Copper steadied after Monday's selloff, dipping slightly in
New York and edging higher in London. But outlook for the No. 1
base metal remained weak.
"With the Fed's 'easing news' behind us, investors will now
have to refocus on the dreary economic landscape and the
unresolved debt situation still simmering in Europe," said
Edward Meir, an analyst for base metals at INTL FCStone.
"Unfortunately, neither of these will be fixed with by 'easy
money', particularly in the case for a hoped-for economic
rebound in the U.S. where the Fed's action needs time to play
out."
Among precious metals, platinum fell 2 percent, as
striking platinum miners at South Africa's Lonmin mine
accepted a pay offer that could have them returning to work on
Thursday.
The bellwether 19-commodity Thomson Reuters-Jefferies CRB
index fell 1 percent, adding to Monday's 2 percent
decline and marking its sharpest two-day slide since June.
Oil was also pressured by No. 1 producer Saudi Arabia's move
to pump around 10 million barrels per day and bring prices of
benchmark Brent crude closer to $100 per barrel, according to a
senior Gulf source.
Brent settled at $112.03 per barrel, off Friday's
4-month high of nearly $118.
A majority of oil producers in OPEC want oil prices around
$100 per barrel and would boost production over the next few
months, the Gulf source said.
"Unless there is a major supply disruption in the Middle
East, there is nothing to push it higher," said analyst Andrey
Kryuchenkov at VTB Capital. "Saudi will seek to drive it closer
to $100 and everyone knows it."
Soybean prices hit a one-month low as euphoria over the Fed
stimulus faded, and U.S. harvest of the crop advanced at a
record pace despite worries earlier of damage from a disastrous
drought.
"There has been a convergence of negative news," Don Roose,
president of U.S. Commodities in West Des Moines, Iowa, said,
referring to soy.
Better-than-expected soy yields, concern that demand from
top soy importer China was set to wane and a surge in the
slaughter of U.S. hogs -- one of the main consumers of soy feed
-- added to the market's bearishness.
Soybeans settled down 1.8 percent at $16.40 per bushel
in Chicago trade, after touching $16.30-1/2, a low since Aug 17.
The contract had scaled record highs above $17.55 earlier this
month as hot weather wilted crops in the U.S. Midwest farm belt.
Soybeans aside, corn also saw extended pressure from
Monday's selloff, falling 1.7 percent in the latest session.
Wheat fell nearly 1 percent.

Prices at 4:41 p.m. EDT (2040 GMT)
LAST/ NET PCT YTD
CLOSE CHG CHG CHG
US crude 95.46 -1.16 -1.2% -3.4%
Brent crude 111.81 -1.98 -1.7% 4.1%
Natural gas 2.773 -0.092 -3.2% -7.2%

US gold 1771.20 0.60 0.0% 13.0%
Gold 1770.49 9.54 0.5% 13.2%
US Copper 380.25 -0.75 -0.2% 10.7%
LME Copper 8319.00 18.00 0.2% 9.5%
Dollar 79.188 0.185 0.2% -1.2%
CRB 311.560 -2.900 -0.9% 2.1%

US corn 744.00 -8.50 -1.1% 15.1%
US soybeans 1639.25 -30.75 -1.8% 36.8%
US wheat 875.75 -14.50 -1.6% 34.2%

US Coffee 177.50 1.85 1.1% -22.2%
US Cocoa 2532.00 -52.00 -2.0% 20.1%
US Sugar 19.44 -0.59 -2.9% -16.3%

US silver 34.644 0.346 1.0% 24.1%
US platinum 1635.30 -36.30 -2.2% 16.4%
US palladium 666.85 -21.75 -3.2% 1.6%