Wednesday, 5 August 2009

CBOT Corn Stumbles On Bearish Crop Projection

CBOT Corn Stumbles On Bearish Crop Projection

1305 EDT [Dow Jones] - CBOT corn futures have stumbled following bearish production estimates from Informa, traders and analysts say. Informa projects a final crop of 12.991 billion bushels, with a yield of 164 bushels per acre, according to traders. The report prompted a slide that was accelerated by technical selling, a trader says. John Kleist, broker/analyst for Allendale, adds that the threat from hot weather entering the U.S. corn belt has been overblown. "It's August. It's going to get hot," Kleist says. He adds that Tuesday's rally came amid a drop in open interest of about 10,000 contracts, which "doesn't look like index funds coming in." Funds have sold an estimated 6,000 contracts. Sep corn is down 12 1/4 cents to $3.42 1/4 per bushel and Dec corn is down 13 1/4 cents $3.52 1/2. (IPB)

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August 05, 2009 13:06 ET (17:06 GMT)

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