Chicago corn slid for a second session on Monday, falling from a six-month high as investors squared positions ahead of a US government report on global supply-demand of agricultural products due later in the day. Soybeans fell after hitting a contract high on Friday, while wheat eased, taking a breather following an almost 9-percent rally last week.
Chicago Board of Trade May corn had dropped 1.3 percent to $4.82-1/2 a bushel by 0242 GMT, adding to a 0.4-percent decline in the previous session, when prices hit a peak of 5.02-1/2 a bushel - their highest since September 3. May wheat dropped 0.5 percent to $6.50-1/2 a bushel, having closed up 1.2 percent on Friday, when prices marked a high of $6.63 a bushel - the strongest since early December. May soybeans fell 0.5 percent to $14.50-1/2 a bushel, having firmed 1.34 percent on Friday.
Markets are preparing for the release of a US Department of Agriculture report, which analysts expect to show a lowering of the agency's estimates for soy and corn crops in Brazil and Argentina following poor crop weather in recent weeks. "It is more of a position squaring ahead of tonight's USDA report as the market had obviously rallied very strongly over the past month-and-half or so," said Luke Mathews, a commodities strategist at Commonwealth Bank of Australia, referring to corn futures.
"There could be an element of wider risk-off on easier than expected Chinese economic data." China's exports unexpectedly tumbled in February, swinging the trade balance into deficit and adding to fears of a slowdown in the world's second-largest economy despite the Lunar New Year holidays being blamed for the slide.
Strong export demand for US soybeans could force the USDA to cut its outlook for the domestic stockpile by 6 percent in the monthly report scheduled for release at 1700 GMT. Export commitments for US soybeans for the 2013/14 marketing year, which began on September 1, have already surpassed USDA forecasts. Wheat and corn have drawn support from jitters about political instability in Ukraine, a major exporter of both grains.
Comments
Comments are closed.