CBOT corn falls on favourable weather

17 Sep, 2020

CHICAGO: Chicago Board of Trade corn futures closed lower on Tuesday on a round of profit-taking after the benchmark December contract touched a six-month high, and as forecasts called for favorable harvest weather in the US Midwest, traders said.

CBOT December corn settled down 3-1/2 cents at $3.66 per bushel one day after reaching $3.71, the contract's highest since mid-March.

Forecasts called for generally dry and warm weather in the US Midwest over the next two weeks, likely accelerating the harvest of what is expected to be a large corn crop.

The US Department of Agriculture (USDA) late Monday said the corn harvest was 5% complete, in line with trade expectations and the five-year average.

Traders largely shrugged off a decline in US crop ratings. The USDA rated 60% of the corn crop in good-to-excellent condition, down from 61% last week, while analysts on average had expected no change.

Export demand helped underpin futures. The USDA on Tuesday confirmed sales of 120,000 tonnes of US corn to unknown destinations.

Read Comments