Corn and soybeans fall for five consecutive days to reach multi-month lows as favorable U.S. crop weather triggers a wave of fund liquidation
- Chicago corn and soybean futures fell further on Thursday, hitting multi-month lows. The CBOT corn main contract dropped 1.1% to $4.2675 per bushel, marking a new low since February 20 for the second consecutive trading day. CBOT soybeans fell 0.6% to $11.475 per bushel, reaching the lowest since April 8. CBOT wheat fell 0.1% to $5.865 per bushel, the lowest since April 14. All three contracts are set for a fifth consecutive day of declines.
- According to the head of a consultancy, the broadly positive outlook for US corn and soybean crops prompted investment funds to continue selling. These funds have built near-record long positions in major crops this year. On the demand side, muted purchases of US crops are also putting pressure on prices.
- From a market sentiment perspective, the Israel-Lebanon ceasefire agreement drove crude oil lower, which also weakened support for biofuel crops such as corn and soybean oil. The start of the US winter wheat harvest and improved production prospects in key exporting country Russia have shifted market focus back to ample global supply. Traders are also monitoring the potential impact of a case of New World screwworm in Texas on livestock and feed demand. Overall, the seasonal supply fundamentals of crops are once again dominating price discovery, and geopolitical premiums are rapidly exiting the agricultural markets.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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