CBOT corn drops as USDA trade aid package seen encouraging plantings

CHICAGO: Chicago Board of Trade (CBOT) corn futures declined for the first time in nine sessions on Thursday after the US government unveiled a farm aid package that could encourage farmers to plant more corn despite adverse weather this spring.

* The Trump administration unveiled the $16 billion farm aid package to offset losses from a trade war with China and said payment rates to farmers would be determined by where they farm rather than what crops they grow.

* CBOT July corn ended down 4-3/4 cents at $3.89-3/4 a bushel. The contract peaked at $3.99 earlier in the session, matching Tuesday's top that was the highest for a most-active contract since May 29, 2018.

* Farmers were not expected to qualify for the USDA aid package unless they plant a crop. Traders said that could limit the number of corn acres claimed as unplantable under prevented planting insurance policies.

* Rainy weather has delayed US corn planting and forecasts for more rain, particularly in the western Midwest, suggest farmers may remain sidelined for at least a week.

* The USDA said corn export sales last week totaled 625,900 tonnes, in line with forecasts for 250,000 tonnes to 1.05 million tonnes.