[caption id="attachment_5669" align="aligncenter" width="1014"]
File Photo[/caption]
Chicago corn futures fell 1% percent on Monday (November 2, 2020) as lower oil consumption in the wake of the coronavirus lockdown raised concerns about demand for grain-based fuel ethanol.
Wheat fell for a sixth consecutive session to its lowest since mid-October while soybeans lost ground after closing higher on Friday.
Improved weather in parts of South America also added pressure on prices.
“The market has lost impetus from the shrinking areas of concern for South America crops,” said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia.
“And, positive momentum is also a bit shaky. South American weather though remains a variable given the unusual weather patterns created by La Nina.”
The most-active corn contract on the Chicago Board Of Trade (CBOT) gave up 1% at $3.94-1/2 a bushel, as of 0322 GMT, after closing unchanged in the previous session.
Wheat was down 0.5% at $5.95-1/4 a bushel, after hitting its lowest since Oct. 14 at $5.93 a bushel earlier in the session and soybeans slid 0.8% at $10.47-3/4 a bushel.
Oil prices fell more than 3% on Monday on worries a swathe of coronavirus lockdowns across Europe will weaken fuel demand, while traders braced for turbulence during the U.S. presidential election week.
Around 40% of U.S. corn is used in making ethanol, which competes with fossil fuel for market share. Find more...
Source: Online/SZK
Comment Now