Kansas City, Missouri (WiredPRNews.com) — The future of corn in the U.S. lost more ground after the dropping more than two percent in the Chicago trade during its sell off. This decline was triggered by ideal crop weather overseas along with steep reductions in crude oil. Analysts reported that the future of grain will suffer from more losses in times to come as the funds liquidate the positions on the predictions of bumper crops.
According to the leader of the proprietary fund management team at Tokyo’s Sumitomo Corp, the funds are long even though they have been liquidated. More liquidation pressure can be expected in weeks to come if the weather remains to be pleasant. The Chicago Board of Trade’s contract of September corn was down 5 cents or 0.85% at $5.82 per ½ bushel after facing a fall of 2.33% in the United States trade.
Corn is going through a critical and severe pollination stage of development in July when dry and hot conditions reduce the yields. Weather in the month of August is the main key to the cropping of soybeans when the crop set the pods, which determines the production and yield. Traders have also credited the decline to the long liquidation in order to balance the accounting at the ending of the month.
The prospects of wheat production in the world have been facing improvements in the last month along with a record crop of around 662 million tons for the forecast of 2008-2009, as reported by the International Grains Council.