Corn extends losing streak on Dollar, China
U.S. corn futures ended lower, extending the market's losing streak to five consecutive days, as strength in the U.S. dollar and fears of reduced consumption of commodities by China weighed on prices.
Chicago Board of Trade December corn ended 11 1/4 cents, or 2%, lower at $5.46 a bushel. Speculative fund selling was estimated at 15,000 lots.
The rise in the U.S. dollar set the stage for lower price action, with the absence of fresh export news to buoy prices leaving futures susceptible to broad-based losses in financial markets, said Shawn McCambridge, senior grains analyst with Prudential Bache.
Fears of slowing growth in China after its central bank raised interest rates for the first time in nearly three years attracted sellers.
The exhaustion of buyers in the market helped extend the slide, with traders concerned that a lack of daily export sales announcements is a signal that current prices are muting export demand.
However, considering the price spike after the October U.S. Department of Agriculture crop report, the recent price slide has not done much damage to the supportive sentiment in the market, McCambridge said. Recent declines are seen as more of a modest correction from overbought conditions, he said.
Commercial buying on price breaks are limiting downward momentum as the uncertainty of 2010 production and the threat of further yield cuts in USDA's November crop report provided underlying support, McCambridge added.
CBOT oat futures ended lower, tumbling in step with the broad-based losses seen in commodity markets. December oats settled 17 cents or 4.7% lower at $3.45.
Ethanol futures settled lower, under pressure from lower corn and crude oil futures. November ethanol ended $0.039, or 1.8%, lower at $2.174 a gallon.
-By Andrew Johnson Jr., Dow Jones Newswires; 312-347-4604; firstname.lastname@example.org
(END) Dow Jones Newswires
October 19, 2010 16:05 ET (20:05 GMT)
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