Corn futures on the Chicago Board of Trade (CBOT) tumbled over 0.5 per cent on Wednesday amid high demand from China and worries about tightening global supplies.
The most-active corn futures which gained 0.9 per cent in the previous session, lost 0.7 per cent at $6.54 a bushel.
According to the latest report by the The United States Department of Agriculture (USDA),private exporters recorded the sale of 1.36 million tonnes of corn to China for delivery in the 2021/22 marketing year, the second consecutive day the country has booked a purchase of at least one million tonnes of corn.
Also sitting on the bearish spot, wheat slid for the third day in a row, hitting a four-week low as the most-active wheat futures declined 1.3 per cent at $6.89-1/2 a bushel, near the session low of $6.89 a bushel – the lowest since April 22.
Ole Houe, director of advisory services at brokerage IKON Commodities,Sydney, opined that supply and demand estimates of the grains are more bullish than anticipated. He added that tighter world supplies for corn and wheat are likely to extend next year, resulting in high prices for the grain commodities