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Traders trim risk, sink grains

03/20/2012 @ 3:10pm

US corn futures drop over 2% on a combination of broad based fund liquidation across asset classes and fear of declining export demand.

Traders had a tough time making a bullish case for corn Tuesday, with the absence of fresh export demand news and overbought conditions promoting a risk off environment, analysts say. Investors also reduced some length in the market, as traders factor in the potential for large US corn plantings in 2012. CBOT May corn ends down 16c at $6.47 1/2/bushel. 

US soy futures stumbled Tuesday, with soybeans sliding to one-week lows in a broad-based risk-off trading day. Widespread fund selling across commodities dogged soy prices, as traders looking to reduce some risk exposure took profits on prior gains, analysts say.

The absence of fresh export news left buyers without an incentive to extend gains, with overbought market signals accelerating technical selling, analysts add. CBOT May soybeans ended down 21 1/2c at $13.45/bushel, May soymeal dropped $5.30 to $365.60/short ton, and May soyoil fell 1.07c to 54.33cents/lb.

Call us at 212.416.3100 or email (paul.vigna@dowjones.com)
(END) Dow Jones Newswires
March 20, 2012 14:55 ET (18:55 GMT)
DJ MARKET TALK: US Soy Futures Succumb To Broad-Based Selling->copyright

Call us at (212) 416-3100 or email patrick.sullivan@dowjones.com
(END) Dow Jones Newswires
March 20, 2012 15:05 ET (19:05 GMT)
DJ MARKET TALK: US Corn Futures Slide; Traders Reduce Risk->copyright

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