Corn futures sank to the lowest close since August as traders soured on the grain.
Analysts said there were few developments in the corn market, but a backdrop of oversupply weighed down prices. The U.S. Department of Agriculture said last week that this year's U.S. corn harvest would produce more grain than previously expected. The recent pace of exports, meanwhile, has underwhelmed market observers.
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"Ongoing harvest across the northern and eastern Midwest, Thursday's USDA forecast for record-high yields and recent export sales and shipments trends have provided the fundamental backdrop needed to break corn prices," said Dave Marshall of First Choice Commodities in a note to clients.
December-dated corn futures fell 1.4% to $3.37 1/2 a bushel on Tuesday at the Chicago Board of Trade, the lowest close in almost 11 weeks. Prices recently traded in a narrow range, with $3.40 at the bottom end. The move below that level prompted additional selling, analysts said, as investors interpreted trading patterns as a sign that prices could go lower.
Meanwhile, wheat futures rose on Tuesday. Analysts said that a weaker dollar, which helps U.S. wheat exporters compete against rival merchants in countries like Russia, gave traders the impetus to buy wheat contracts while selling corn.
CBOT December wheat futures rose 0.9% to $4.28 a bushel.
Soybean prices were also under pressure, trading at the lowest point in over a month. Wetter weather in Brazil, which is in the early stages of its oilseed season, will provide valuable moisture and ease concerns about the crop.
Weather troubles in South America are likely needed for the U.S. to meet its export targets this year, Mr. Marshall said.
CBOT January soybean futures fell 0.7% to $9.67 3/4 a bushel.
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(END) Dow Jones Newswires
November 14, 2017 16:47 ET (21:47 GMT)