Story
Corn Futures Fall as Midwest Rain Forecast Eases Weather Concerns
Summary
Corn futures declined on Monday as forecasts for beneficial rain in the U.S. Midwest prompted profit-taking, overshadowing another weekly downgrade in crop condition ratings by the USDA.
Corn futures on the Chicago Board of Trade (CBOT) fell on Monday as forecasts for beneficial rainfall across the U.S. Midwest spurred profit-taking and eased concerns about crop stress from recent hot, dry weather.
Price Movement
The most-active December corn futures contract (CZ26) settled down 3.5 cents at $4.69 per bushel. According to market data from Investing.com, prices for other corn contracts saw broad declines of between one and three cents.
Weather Outlook Drives Market
AdThe primary driver for the price drop was an improved weather outlook. According to a forecast from the Commodity Weather Group cited in the report, anticipated rainfall is expected to help alleviate drought conditions that have stressed crops in the key U.S. growing region. This prospect of better weather encouraged traders to sell and lock in profits after a period of weather-related price support.
Crop Condition Context
The decline in futures prices occurred despite a fresh report from the U.S. Department of Agriculture (USDA) indicating deteriorating crop health. On Monday, the USDA lowered its "good-to-excellent" rating for the U.S. corn crop for the third consecutive week. The agency attributed the downgrade to the persistent heat and dry conditions that had recently affected the Midwest.
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