Chicago | Reuters — U.S. corn futures fell about two per cent on Wednesday, with the benchmark December contract hitting a seven-week low as worries about shipping delays from the U.S. Gulf Coast triggered a round of long liquidation, analysts said.
Soybean futures touched a two-month low and wheat followed the weaker trend. Commodity funds hold net long positions in Chicago Board of Trade corn and soybean futures, leaving both markets vulnerable to bouts of long liquidation.
CBOT December corn settled down 11-1/2 cents at $5.22-3/4 per bushel, after dipping to $5.18-1/4, the contract’s lowest since July 12 (all figures US$).
CBOT November soybeans ended down 14-3/4 cents at $12.77-3/4 a bushel after hitting $12.70, its lowest since June 28. December wheat fell eight cents to settle at $7.14-1/4 a bushel.
Grain shippers on the U.S. Gulf Coast reported more damage from Hurricane Ida to their terminals on Wednesday as Cargill confirmed damage to a second facility, while power outages across southern Louisiana kept all others shuttered.
Corn futures fell for a third day on fears that the problems could back up exports through the busiest U.S. grains port as the fall harvest approaches.
“This week’s Ida-related selling led to chart-related selling in the grain and oilseed sector as momentum remains to the downside,” said Arlan Suderman, chief commodities economist for StoneX.
Forecasts pointed to moderate weather for Midwest corn and soy crops, including rain in some dry northwestern zones, as attention turns to harvesting that is getting under way.
Wheat futures followed corn and soy lower, retreating further from 8-1/2-month highs set in mid-August when worries about wheat shortfalls in North America and Russia had roiled markets.
“The fundamentals of the northern hemisphere (crops) are generally known,” consultancy Agritel said in a note. “It is mainly technical considerations that are currently dominating.”
Sovecon said on Tuesday it had cut its forecast for Russia’s 2021 wheat crop to 75.4 million tonnes from 76.2 million, with the consultancy citing low spring wheat yields.
— Reporting for Reuters by Julie Ingwersen in Chicago; additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore.