US MIDDAY: grain markets plunge

13 Apr, 2011

US grain markets fell on Tuesday in a broad commodities sell-off, with corn futures sinking as investors cashed out profits from its recent surge. For the first time since 1996, spot wheat futures fell below those for corn due to tight supplies that have triggered record-high corn prices - a situation that could prompt livestock feeders to switch from corn to wheat.
Wheat futures at the Chicago Board of Trade fell nearly 5 percent, while soybeans slid 3 percent in a second day of selling that started when long-time commodity bull Goldman Sachs told clients to take profits in oil. Wheat and soybeans posted their biggest two-day drop in a month and corn was down 3 percent from its record high of $7.83-3/4 hit early on Monday.
At 11:13 am CDT (1613 GMT), CBOT May corn was down 19 cents at $7.57 and July was lower but off initial losses when it traded down the daily 30 cent limit. May wheat was down 41 at $7.57-1/4 and soybeans for May delivery were down 36-1/2 cents at $13.32.

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