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Futures prices for U.S. corn and other crops fell sharply Wednesday, pressured by weather forecasts for much-needed rains in the Midwest where crops have struggled with dry conditions.
The National Centers for Environmental Prediction said it expects many parts of the Corn Belt that have been turning dry over the past month will get more rain than usual for this time of year over the next two weeks – a big change from earlier indications that El Niño would limit rainfall for thirsty crops.
On the Chicago Board of Trade, corn (C_1:COM) for December delivery closed -4.3% to $5.36 3/4 per bushel, after falling to as low as $5.34, the contract’s lowest level since June 9.
Also, wheat (W_1:COM) for September delivery settled -4.2% to $6.69 3/4 per bushel, and November soybeans (S_1:COM) finished -2.3% to $12.65 per bushel.
ETFs: (NYSEARCA:CORN), (WEAT), (SOYB), (DBA), (MOO)
While much of the selling was tied to the short-term precipitation outlook, analysts said traders also were trimming their crop positions ahead of the expected release Friday of the USDA’s Acreage and Stocks reports.
More on U.S. crop futures:
