Chicago corn, wheat drop on profit taking

Chicago corn and wheat tumbled on Friday, as some investors opted to liquidate their holdings following Thursday's strong rebound. Besides, a rally in the U.S. dollar also added to negative tone. However, soybeans further hiked on unfavorable weather in the South America.


The most active corn contract for May delivery shed 13 cents, or 1.85 percent, to close at 6.895 U.S. dollars per bushel. May wheat lost 6.25 cents, or 0.85 percent, to 7.3325 dollars per bushel. May soybean rose 3.75 cents, or 0.28 percent, to 13.5825 dollars per bushel.


Market analysts said profit-taking selling and a cautious attitude to hold long position into the weekend were seen as reasons for the selling in the corn and wheat markets. Besides, a stronger dollar also reduced the appeal of agricultural products to investors holding other currencies and added to the negative tone.


The dollar index, which compares the U.S. unit to a basket of six currencies, rose to 76.236, up from 75.665 late Thursday, amid concerns about the latest twists in Europe's sovereign-debt crisis.


However, soybeans gained support from unfavorable weather in the South America and carried bullish sentiment into the day. Wet weather in Argentina has slowed the harvest and moisture weather for northern Brazil and other parts of South America may have helped trim production estimates.


Chicago grain prices all rebounded on Thursday after the U.S. Department of Agriculture released the robust export data for the week ended March 17.
(Source:http://news.xinhuanet.com)