Corn for December delivery dipped 1.4 percent to touch $6.76-3/4 a bushel, the lowest since August 1 even as September wheat dropped 1.5 percent to reach $6.47 a bushel, trading close to Monday’s one-month low, said Reuters.
US corn futures have been heavily supported by the market, attributable to strong fundamentals. But with sell-off contagion spreading, corn futures are finding it difficult to keep the pace.
US corn crop conditions are not optimal as hot and dry climate is prevailing casting a shadow over the pollination phase. The U.S. Agriculture Department rating for corn crop at 60 percent good to excellent–down 2 percentage points from a week earlier and down from 71 percent a year ago—could be the reason behind corns renewed status relative to wheat.
The USDA (United States Department of Agriculture) is expected to release its demand-supply report in the approaching Thursday and traders believe that it would have bullish suggestions.
But with grain and oilseed markets sharply lower on pressure from external markets, it is not sure if the market momentum would build up.
On Tuesday, US soy lost ground and dipped to the lowest since mid-March even as Corn fell to a week’s low with Wheat leading corn in decline.
With the corn prices hovering high, poultry farmers are switching to wheat helpings for their stock.
The commodities and the equities are under heavy selling pressure, thanks to the debt crises straddling the Atlantic.
Fears of Recession 2.0 is taking markets to yet another tailspin.