Corn cools off

12:29 PM, Jan 19, 2011 | by Dan Piller

Corn prices had risen every trading day since Jan. 7 on the Chicago Board of Trade, but that streak appears to be over today as corn is down 14 cents per bushel to $6.44 for March delivery.

That price is still a 30-month high and is an 85 per cent gain over the $3.45 per bushel price corn brought last June, before July floods cut the U.S. crop and supplies have tightened worldwide due to poor growing conditions in Asia and parts of South America.

Traders said a disappointing export inspections report generated fears that the high U.S. prices may dampen demand. Several African nations are known to have made purchases of wheat as a animal feed in place of corn.

Soybeans are down 2 cents per bushel to $14.11 with an hour to go in trading in Chicago. Rains this week in Argentina, while perhaps too late for pollinated corn, are believed to have saved a good crop there.

Livestock futures, which had gained strongly in recent weeks, traded slightly lower Wednesday morning. The Board of Trade’s midsession report suggested the futures market had gotten ahead of itself, saying “the stiff premium of futures to cash was seen as a limiting factor on the upside.

For more agriculture and energy news click here for the Register’s Green Fields page on Facebook.