Corn futures on the Chicago Board of Trade (CBOT) declined as traders engaged in profit-taking after the benchmark contract hit a six-month high during volatile trading ahead of the year’s end.
Key Market Movements:
Corn Futures:
The most-active corn contract (Cv1) fell by 1-3/4 cents to $4.52-1/4 per bushel after reaching a peak of $4.59, the highest price since mid-June.
Soybean and Wheat Futures:
Soybean futures (Sv1) increased by 2 cents to $9.91-3/4 per bushel.
Wheat futures (Wv1) rose by 1-3/4 cents to settle at $5.48-1/4 per bushel.
Market Analysis:
Profit-Taking:
Analysts noted that the price movements were largely influenced by year-end positioning as traders sought to secure profits.
Arlan Suderman, chief commodities economist at StoneX, commented on the erratic market behavior due to low trading volumes typical of holiday conditions.
Short-Covering:
Karl Setzer, a partner at Consus Ag Consulting, mentioned that the session began with some short-covering but noted that traders subsequently stepped back from the market.
Weather Concerns:
Argentina:
Traders are monitoring moisture issues in Argentina, a key exporter of soy and corn. Hot and dry weather conditions are raising concerns about potential crop stress.
Russia:
Conditions for winter wheat crops in Russia’s central and Volga regions are expected to deteriorate in January. Warmer-than-usual weather combined with excess moisture could hinder the necessary dormancy period for winter crops, weakening their growth.