December corn ended down 17 1/2 cents to US$3.72 3/4 per bushel, and March corn ended down 17 1/2 cents to US$3.88 3/4.

 

Prices swung throughout the day. At one point in the morning the market was trading unchanged, but pressure from a sharply lower stock market eventually prevailed over some supportive elements in the market, traders said. Outside markets are setting corn's direction, traders said.

 

"If you trade stocks, or trade the dollar, or trade financials, you can trade the grains," a trader said.

 

A drop in crude oil also weighed on the market, although gold climbed, helping to limit losses, an analyst said.

 

Holding above last week's low of US$3.71 in the December contract was "huge," an analyst said, although another trader noted the close was lower than last week's lowest close.

 

Funds continue to liquidate across the commodities spectrum, traders said. The economy is also prompting bearish concerns about weak demand in a worldwide recession.

 

Corn should have some factors working in its favor, traders said. The harvest continues to be delayed by wet, cold weather.

 

DTN Meteorlogix said a windy and cold weather pattern will develop in the central U.S. during the first half of next week, with temperatures 10 to 12 degrees below normal. Drier and warmer conditions more favorable to harvest are expected in the second half of next week.

 

Farmers' refusal to sell at the current low prices is strengthening basis, another supportive factor in the market, and end-users are coming in to buy the market at its lows, a trader added.

 

"Commercials are not afraid of buying corn at US$3.75 or US$4, when just three months ago it was trading at US$7," a trader said.

 

CBOT oats futures ended lower amid continued liquidation, a trader said. December oats were down 5 cents to US$2.50 and March oats were down 5 cents to US$2.67 1/2.