Story
Corn Futures Retreat From One-Month High on Profit-Taking, Favorable Weather Forecasts
Summary
Chicago Board of Trade corn futures closed lower on Wednesday, pulling back from a one-month peak due to profit-taking by traders and revised weather forecasts indicating less heat stress on U.S. crops.
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.