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CBOT corn down on profit-taking and long liquidation

corn----CHICAGO: Chicago Board of Trade corn futures were lower on Wednesday on profit-taking and long liquidation following the market's rise to a one-month high in the previous session, traders said.

 

* Spillover selling from a sharp drop in soybeans also pressured corn futures, they said.

 

* Dry weather in the US Plains and western Midwest continues to cause concern about harm to the already drought-stricken hard red winter wheat crop and portions of the corn and soybean growing areas, agricultural meteorologists said. "In the US, the pattern remains cold and mostly dry, but temperatures remain above damage thresholds," said Joel Widenor, meteorologist for Commodity Weather Group. (CWG)

 

* Dry weather is a mounting concern in Argentina and in southern Brazil with only limited rainfall seen over the next two weeks, Widenor said. "In Argentina, very isolated thundershowers on Thursday and early Friday will be of little benefit, but at least half of the belt could see showers late in the six to 10- day period," he said.

 

* Spot basis bids for corn were mostly steady to lower at elevators, processors and ethanol plants around the US Midwest on Wednesday as reduced demand weighed on bids despite a slow pace of country sales, dealers said.

 

* Key support for the March contract is at its 200-day moving average of $6.93-1/2 and resistance is at the 50-day moving average of $7.23-3/4. The nine-day relative strength index is at 57.

 

Copyright Reuters, 2013