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Technical selling on Tuesday sent Chicago Board of Trade corn futures to the lowest prices in more than two months, as some traders began questioning whether the grains market is finally undergoing a reality check given the glut of US supplies and ongoing trade uncertainty. CBOT March corn closed down 5 cents at $3.69-3/4 per bushel. Markets were closed on Monday for Presidents Day, a US holiday.

Earlier in the day, the most actively trade corn futures contract fell to $3.69 per bushel, the lowest price since Nov. 28, 2018. The US Department of Agriculture reported export inspections of US corn in the latest week at 941,811 tonnes, in line with trade expectations for 800,000 to 1,050,000 tonnes.

Traders said grain futures were being pressured on Tuesday by mounting concerns about how much soybean acreage US farmers will plant this spring, as South American weather improves and export competition from Brazil and Argentina shows little signs of waning. The US Department of Agriculture is expected to release its forecasts for US 2019 corn, soybean and wheat plantings this week at its annual Outlook Forum.

China said it will continue to diversify its agricultural import channels, and increase domestic soybean planting acreage, according to a government policy statement published on Tuesday. The report comes as a new round of talks is underway between the United States and China to resolve their trade dispute, with follow-up sessions at a higher level later in the week.

Copyright Reuters, 2019


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