US corn and soyabean futures fell their daily trading limits early on Tuesday, notching their biggest losses since a devastating drought in the US Midwest sparked a record rally that pushed prices to all-time highs. Forecasts for rain sparked the heavy selling.
"This is probably telling us that the highs are in," said Ted Seifried, a senior market analyst for Zaner Group in Chicago. "People get real antsy up here (at these levels). Guys are nervous. There are a lot of people running for the doors." Wheat futures, which followed corn higher for the past month, were also falling as investors shed positions picked up during the rally. Soyabeans have fallen 7.3 percent this week, the biggest two-day decline for the spot contract since February 2011, on the notion that rain in the northern Midwest this week could boost harvest expectations. Corn futures are down 6.1 percent since Friday's close as traders locked in profits after the market surged past $8 a bushel even though most analysts have given up hope for the crop.
At 11:25 am CDT (1625 GMT), Chicago Board of Trade November soyabean futures were locked down 70 cents at $15.52-1/4 a bushel. CBOT December corn was 33-1/2 cents lower at $7.52 a bushel, while the front-month September contract was locked down 40 cents at $7.74. CBOT September wheat fell 50-1/2 cents to $8.62-1/4 a bushel.
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