September 9, 2010

US corn futures slip on profit taking

US corn futures slipped Wednesday, ending near session lows as the market saw profit-taking after sharp recent gains, while traders braced for a key government report Friday (Sep 10).

The market traded both sides of unchanged during the session but ended on a weak note. September corn fell 4 cents, or 0.9%, to US$4.47 1/2 a bushel, while December corn settled down 3 3/4 cents, or 0.8%, at US$4.62 1/2.

Sharply lower wheat pressured other grains, analysts said. Some analysts also said the market is short-term overbought and due for a correction after hitting a 23-month high last week.

Traders are awaiting the government's supply and demand report, which the USDA will release at 8:30 a.m. EDT (1230 GMT) Friday. While traders expect the USDA to cut its projected crop size, a big reduction might be needed to continue fuelling the recent bull market, traders and analysts said.

Analysts also said that the market is lacking the heavy fund-buying that has fuelled corn's recent climb. Funds sold an estimated 7,000 contracts Wednesday. Corn prices surged to record highs near US$8 in 2008, due in part to record-high crude oil prices.