Corn futures on the Chicago Board of Trade ended lower on Tuesday on spill-over pressure from a drop in wheat and a downturn in crude oil futures, traders said. Corn futures held firm in early dealings because of a weak dollar and firm crude oil markets. But the market began easing when crude began falling and when the wheat market dropped sharply.
Pressure on the corn market also was stemming from active harvesting of a big corn crop this year in the United States. CBOT corn closed 3-1/2 cents per bushel lower to 1/2 higher, with December down 3-1/2 at $3.61 per bushel. The old-crop/new-crop spreads were widening amid fresh commission house buying of the far back months, traders said.
Volume was moderate estimated at 127,249 futures and 41,880 options. Seasonal harvest pressure also remained a bearish factor in the corn futures market. Traders and analysts have said there were no major problems in the harvest this year, which is expected to see the largest corn crop ever in the United States, at more than 13.0 billion bushels. The previous record was only 11.8 billion bushels, harvested in 2004.
A rally to decade-high prices for corn early this year prompted US farmers to plant the largest land area to corn since 1944 to take advantage of the steep prices that were triggered by surging demand for corn from the ethanol industry.
Wet weather in the western Corn Belt had been slowing harvest but overall brisk harvest progress has been noted. The US Department of Agriculture late on Monday said 60 percent of the US corn crop had been harvested, above the 55 percent five-year average.
Drier weather in the western Midwest is now boosting harvest progress while wetter weather in the south and east is slowing progress, DTN Meteorlogix weather said on Tuesday. Cash basis bids in the Midwest were steady to firm and farmer selling was slow.
Technical traders watched the December contract hold above key support on Monday at its 100-day moving average of $3.58-3/4 per bushel and key resistance is now at its 200-day moving average of $3.74-3/4. The nine-day relative strength index for December closed at 53.
Technical support was at $3.60 per bushel and resistance at $3.69-3/4. Oat futures closed unchanged to 1-1/2 cents per bushel lower, with December down 1-1/4 at $2.78-1/4. Estimated oat volume was heavy at 1,664 futures and 34 options.