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Corn futures drop sharply as traders lock in profits after rally
The most-active Chicago corn contract fell as much as 1.8% on Wednesday, following a surge that pushed speculative corn positioning to a four-year high last week.
Corn futures fell sharply on Wednesday as traders took profits after a powerful rally that had driven speculative positioning to its highest level in years, according to Hedgeweek citing Bloomberg data. The most-active Chicago corn contract dropped as much as 1.8%, marking its biggest intraday decline since 13 August.
Wheat and soybeans also came under pressure as investors trimmed exposure across the US grain complex. The pullback followed the August rally in agricultural commodities, which was linked to geopolitical tensions and adverse weather.
Attacks on Black Sea ports and shipping raised concerns about global grain supplies, while heatwaves in key growing regions increased fears of weaker crop output. The Bloomberg Agriculture Spot Index, tracking 10 major agricultural products, rose more than 13% in August, its strongest monthly gain since July 2012.
Hedge funds were among the beneficiaries of the move, with Commodity Futures Trading Commission data showing speculators’ net bullish corn position reached a four-year high last week. The Wednesday decline suggests some commodity-focused hedge funds and other speculative investors used the rally strength to realize profits rather than simply reversing sentiment.
Latest closeWheat $774.75 ▲1.4%|Corn $542.50 ▲4.0%|Soybeans $1,308.75 ▲0.1%