US corn futures fell to new contract lows, as the escalating trade war between the United States and China weighed down the Chicago Board of Trade's grain commodities complex on Wednesday. CBOT September corn futures hit a new contract low, and ended the day down 7-3/4 cents at $3.40 a bushel. CBOT December corn futures, the most actively traded contract, ended down 7-1/2 cents at $3.53-1/4 a bushel.
Fears about rising trade tensions with China hung over markets in general after Washington detailed products to be covered by a 10 percent tariff on an extra $200 billion worth of Chinese imports. China has vowed to strike back. Favorable crop weather in the US Midwest also pressured corn futures, traders said, as expectations began to wane of a weather event that might curtail crop yields during the pollination period.
Forecasts for a favorable mix of rain and moderate heat in the week ahead in the US Midwest has bolstered expectations that the US Department of Agriculture (USDA) will raise its production forecast in a monthly crop report on Thursday. Trade estimates for corn exports: 400,000 to 800,000 metric tonnes for the 2017-2018 crop marketing year; 250,000 to 550,000 metric tonnes for the 2018-2019 crop marketing year.
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