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Corn Futures Retreat From One-Month High on Profit-Taking, Favorable Weather Forecasts
Corn futures on the Chicago Board of Trade (CBOT) ended lower on Wednesday as traders took profits after prices reached a one-month high earlier in the session. Downward pressure was also applied by updated weather forecasts that suggested more favorable conditions for U.S. crops during a key growth period.
The September corn contract settled down 8-3/4 cents at $4.35 per bushel, after touching an earlier high of $4.44-3/4. Similarly, the December corn contract finished 8 cents lower at $4.56-1/4 per bushel, retreating from $4.65-3/4, its highest price since June 3.
New weather models reduced the expected intensity of a mid-July heatwave across the Midwest, easing concerns about potential stress on corn crops during their critical pollination stage. A stronger U.S. dollar also weighed on prices by making American grains more expensive and less competitive on the global market.
AdIn related data from the U.S. Energy Information Administration, corn-based ethanol production for the week ending July 3 was 1.093 million barrels per day, a decrease of 24,000 barrels from the previous week. U.S. ethanol stockpiles fell by 762,000 barrels to 23.928 million, their lowest level since January.