Corn posts biggest-ever two-day decline on big supply

Agricultural , Corn , Food , Soybaens , Wheat Apr 01, 2013 No Comments

CornChicago corn prices experienced their biggest two-day drop on record, tumbling 12.6 percent, or 93 cents, as larger-than-expected U.S. stockpiles weighed on the market, causing hedge funds to sell heavily.

Pressured by corn, Chicago wheat fell to its lowest nearby price in nine months, and soybeans hit a nearly three-month low.

Chicago Board of Trade May corn on Monday fell 53 cents, or 7.6 percent, to $6.42-1/4 per bushel, touching the lowest price since late June and flirting with its expanded daily limit of 60 cents. The 12.6 percent drop in the nearby contract over two days was the largest ever for a spot month contract.

CBOT floor sources said hedge funds have sold 75,000 CBOT corn contracts over the past two days, or 375 million bushels of corn, which represents more than 35 percent of last years U.S. crop.

via Corn posts biggest-ever two-day decline on big supply | Reuters.

Rod Sherkin

Rod is a former senior executive, responsible for Purchasing, for both Pillsbury and Ball Packaging back in the 80’s and 90’s. Since then, he has continued to work in the Purchasing field as both a consultant and founder of the website Propurchaser.com.

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