CHICAGO: Chicago Board of Trade soyabean futures pulled back on Thursday after hitting their highest level in about four-and-a-half years in the previous session, and corn futures retreated from their highest levels in more than a year.
The markets took a breather after rallying on a US Department of Agriculture crop report, issued Tuesday, that projected domestic corn and soyabean stockpiles at a seven-year low.
Profit-taking and technical selling weighed on corn, traders said, a day after the March contract set a new high of $4.35-3/4 a bushel before turning lower and closing below Tuesday’s settlement.
“Yesterday March corn had a key reversal,” said Don Roose, president of broker US Commodities. “That is a key signal that we either hit an intermediate top or a major top. A major top is, you can’t get back up there again anytime soon.”
The most-active soyabean contract on the Chicago Board of Trade (CBOT) was down 8-1/2 cents at $11.44 a bushel at 12:05 CST (1805 GMT). On Wednesday, prices reached their highest since June 2016 at $11.62-1/4.
CBOT corn fell 9-1/4 cents to $4.08 a bushel, after the most actively traded contract on Wednesday reached its highest price since July 2019.
“US markets have marked a pause after the jump in prices following a stunning USDA report for corn and soyabeans,” consultancy Agritel said in a note.
The tighter estimates for US soyabean and corn supplies put more attention on production prospects in South America, with persistent dryness in parts of Brazil and Argentina causing concern.
In the CBOT wheat market, the most-active contract was down 8-1/2 cents at $5.89-1/2 a bushel and reached its lowest price since Oct. 14.
“We’re calling it a correction in a market that is eerie spooky with a key reversal in corn and the trend breaking down on wheat,” Roose said.