CHICAGO: Corn futures on the Chicago Board of Trade fell 2.7 percent on Monday, the biggest one-day drop in a month, led by plunging equities tied to a US debt downgrade by S&P as well as better crop weather.
The US stock market fell sharply after Standard and Poor's late last week cut the country's top-tier AAA credit rating, rattling investors.
US corn and soybean crop production prospects should improve over at least the next two weeks as rain showers and seasonal temperatures blanket the key crop-growing areas, an agricultural meteorologist said on Monday.
But US corn condition ratings were expected to decline in the USDA's weekly crop progress report on Monday afternoon, as the lack of rain in parts of the central Corn Belt continued to stress developing crops.
USDA confirmed sales of 120,000 tonnes of US corn to Egypt for 2010/11 delivery.
Large speculators raised their net long position by 19,418 contracts to 210,056 in the week to Aug. 2 - CFTC.
Spot-month corn held above key support at its 200-day moving average of $6.66-3/4. 1:39 PM CDT
Copyright Reuters, 2011
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