Chicago corn dips to one-month low on prospects of good harvest, technical selling

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Chicago corn dips to one-month low on prospects of good harvest, technical selling

On Tuesday, US corn futures’ prices in Chicago Board of Trade tumbled to a one-month low on prospects of bumper harvest, as a well-planned spring-time planting this season alongside beneficial rainfalls across the Midwest part of the Untied States, had buoyed up the likelihoods of a chartbuster reaping season.

Adding further strains, losses had gathered momentum over recent weeks as Chicago corn futures’ prices had been pummelled to their lowest level since April 22 and breached a barrage of technical support levels, prompting traders to beat a hasty retreat.

Aside from corn futures’ prices, US soybean and wheat futures’ prices had also faltered on prospects of a copious harvesting season. Alongside this, citing that an abrupt sell-off wave in corn futures appeared to be leading the declines in Chicago crop trading exchange, a Zaner Group market strategist, Ted Seifried said, “Corn is just dragging everything down.

We had put some weather premium in the market because of dryness in the West. But now that we’ve gotten rains and a better-looking forecast, we’re taking that weather premium back out”.

Chicago corn contracts plunge to lowest since April 22

Citing statistics, in the day’s US market closure, the Chicago Board of Trade corn futures scheduled to be expired on July, took a tattering header of 37 per cent to $6.20-1/4 per bushel or 25.4 kilograms, marking up the weakest since April 22, while December US corn futures’ prices had faltered 24.5 cents to $5.15-3/4 per bushel or 56 pounds, breaching its 50-day moving average.

Besides, in the day’s steep downturns in Chicago corn, soybean and wheat futures were also galvanized by a USDA (US Department of Agriculture) remark made public on Monday that said American farmers had planted nearly 90 per cent of available corn acres this year as of Sunday, well above a five-year average of 80 per cent.