US corn futures fall

10 Jul, 2008

US corn futures on the Chicago Board of Trade fell on Tuesday amid better crop weather in the US Midwest, improved US crop conditions and falling crude oil, traders said. But the market recovered some, closing off its early lows. The market was technically oversold - sliding nearly a dollar from recent highs.
July corn ended 23-3/4 cents down at $6.92-3/4 per bushel, off its session low of $6.72-1/2. New-crop December corn settled 24-1/2 cents down at $7.22-1/2. Volume was huge estimated at 400,995 futures and 92,768 options. Funds sold about 15,000 corn contracts, traders estimated.
Trading limits revert back to 30 cents from 45 cents for Tuesday night as the market did not see a limit move on the close. The US crop belt will have scattered showers and mild temperatures this week, promoting crop development, a DTN Meteorlogix forecaster said. USDA said US corn crop 62 percent good to excellent, above the 61 percent good to excellent rating of a week ago.
CFTC said funds trimmed long positions in CBOT corn. Deliveries on July 88 lots. CBOT oat futures ended weaker, taking their cue from corn. July oats ended 8 cents down at $4.27 a bushel, new-crop December closed 13 lower at $4.53. CBOT oat volume was moderate to heavy estimated at 1,873 futures. There were 18 deliveries posted against the July contract overnight and met by a strong stopper - a customer of Rosenthal Collins took 15.

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