Chicago Board of Trade corn futures sagged early Friday on forecasts for warmer US Midwest temperatures next week and follow-through sales after the government forecast a record US corn crop, brokers said.
CBOT corn futures were last down 3/4 cent to 2-1/2 cents per bushel, with September down 1-1/4 cents at $2.16-3/4, after hitting a fresh 10-month low of $2.15-1/2, and December down 1-1/2 cents at $2.27-1/2.
Technical signs showed oversold conditions, brokers said. The nine-day relative strength index for September was 24, while the nine-day RSI for December was 27. Chartists view an RSI of 30 or less as an oversold market.
ADM Investor Services sold 1,000 December, Rand Financial and DT Trading each sold 200 December, Cargill Investor Services bought 400 December and Produce Grain bought 200 December, brokers said.
Friday's CBOT sales also built on Thursday's sell-off on the US Department of Agriculture's forecast of 2004 US corn production of 10.923 billion bushels, a record crop, they noted.
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