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Chicago agricultural commodities fall on liquidation pressure

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(Globalpost/GlobalPost)

Chicago agricultural commodity futures were traded lower Monday, as heavy liquidation and sell pressure dominated the trading on the day.

The most active corn contract for May delivery fell 53 cents, or 7.62 percent, to close at 6.4225 dollars per bushel. May wheat lost 23.75 cents, or 3.45 percent, to settle at 6.64 dollars per bushel. May soybeans fell 14 cents, or 1.0 percent, to close at 13. 9075 dollars per bushel.

According to the Chicago Mercantile Exchange (CME), heavy liquidation and sell pressure dominated the marketplace Monday following the bearish U.S. Department of Agriculture (USDA) report last Thursday.

For corn, thoughts that the USDA could increase the 2012-13 ending stocks estimate to over 900 million bushels given the sluggish export demand, steady ethanol production, and better than expected March 1st stocks estimate added downside momentum to start the week.

Wheat markets traded sharply lower on the day. A well-known investment bank lowered its 3-month price forecast for wheat to 6. 50 dollars from 7.80 dollars and 6-12 month outlook to 6.25 dollars from 7.80 dollars.

May soybeans were traded lower on spillover pressure from sharply lower trade in the corn and wheat markets. Traders suggest Chinese demand for soybeans may be revised lower from 63 million tonnes given recent trends in bookings and a slump in domestic hog prices. A well-known investment bank lowered its 3-month price outlook for soybeans to 13.5 dollars a bushel, down from 14 dollars.

http://www.globalpost.com/dispatch/news/asianet/130403/chicago-agricultural-commodities-fall-liquidation-pressure