Thursday, 30 July 2015 00:31
CHICAGO: Chicago Board of Trade corn futures tumbled 2 percent to the lowest in five weeks on Wednesday as investment funds continued to liquidate long positions amid favorable weather for the pollinating US crop, traders said.
Corn prices reversed from earlier narrow gains, resulting in an “outside day” on the charts, which typically is seen as a negative technical indicator that could result in increased chart-based selling.
Corn was narrowly higher in the session on Tuesday but open interest declined, CME Group data showed, suggesting investors were exiting positions rather than making new long or bullish bets.
Cooler temperatures in the Midwestern crop belt were ideal for corn plants, many of which were in the midst of the crucial growth phase that will determine yields, meteorologists said. “Timely” rains this week across most of Iowa also benefited corn fields in the top growing state for the crop, MDA Weather Services said in a note to clients.
Cash basis bids for corn were firm as farmers delayed sales due to the lower futures prices. But many corn end users still were well supplied after a spike in farmer sales early in July, grain merchants said.
