Chicago Board of Trade corn futures hit a two-month low Wednesday as mostly favourable weather in the US Midwest bolstered crop prospects and pushed the July and December contracts below technical support levels, traders said. CBOT July corn settled down 5-1/2 cents at $3.78-1/4 per bushel after dipping to $3.78, its lowest since March 23.
New-crop December corn ended down 4-1/4 cents at $3.99-3/4, dropping below psychological support at $4. Worries about the impact of trade tensions on export demand for US grains hung over the market, adding to bearish sentiment. Ahead of the US Department of Agriculture's weekly export sales report on Thursday, analysts expected the government to report corn sales at 800,000 to 1,300,000 tonnes (old and new crop years combined).
The Trump administration indefinitely delayed a proposed overhaul of US biofuels policy aimed at reducing costs for the oil industry, under pressure from corn state lawmakers who worry the move would undermine demand for corn-based ethanol.
Comments
Comments are closed for this article.