June 25, 2007

US corn futures drop sharply on heavy Midwest rains

Corn futures finished sharply lower on the Chicago Board of Trade, pressured by rain overnight in much of the US Midwest and forecasts for additional rain this weekend.

The rain pressured the market and the losses were exaggerated by technical selling with July opening up under its major moving averages, an analyst said.

Steep losses in soybeans also exerted a negative influence on prices with July soybeans settling 21 1/2 cents lower at US$7.97 per bushel, and November soybeans falling 21 cents to US$8.30 3/4.

July corn settled 17 1/2 cents lower at US$3.67 1/2 per bushel, September dropped 18 cents to US$3.76 3/4, and December fell 17 1/2 cents to US$3.81 1/2.

July wheat closed 13 3/4 cents lower at US$5.92 1/4 per bushel. Kansas City Board of Trade July ended down 16 3/4 cents at US$5.70 3/4, and Minneapolis Grain Exchange July wheat stumbled 5 1/4 cents to US$6.00.