Chicago Board of Trade corn futures sank Wednesday on year-end profit taking after last week's surge to a 10-year high, traders said. Commodity funds hold a huge net long position in CBOT corn futures, making the market vulnerable to a sell-off.
There have been signs of speculators liquidating positions since Monday as open interest has fallen in corn by roughly 13,000 contracts. "The market is reeling from long liquidation. You're 30 cents off your highs in corn," said Roy Huckabay, analyst with The Linn Group in Chicago.
December corn was down 11-1/2 cents at $3.54-3/4 per bushel by 11:50 am CST (1750 GMT). March was 10 cents lower at $3.68. Commodity funds sold 7,000-8,000 contracts by the midsession, traders said.
Deliveries on the December contract totalled 795 lots and there was scattered stopping of the corn. Spot basis bids for corn early Wednesday were steady to firm, underpinned by limited farmer sales, dealers said. CBOT oats were weak amid speculators liquidating long positions. December oats were down 1-3/4 cents at $2.52-1/4 and March was down 2-3/4 at $2.62.
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