COM - CHicago corn tumbles after China cancels another export buy

2023-05-09 18:52:02 ET

U.S. corn futures fell sharply on the Chicago Board of Trade on Tuesday, following confirmation from the U.S. Department of Agriculture that China canceled more U.S. export purchases , as corn from elsewhere is cheaper to buy.

China has now canceled 272K metric tons of previously agreed sales volumes of U.S. corn for the 2022-23 marketing year, coming after a streak of cancellations of exports to China late last month as well as indications of a strong crop coming in the U.S., with concerns that demand could fall short of production.

Corn for July delivery ( C_1:COM ) closed -2% to $5.84 3/4 per bushel, while July wheat ( W_1:COM ) ended -1.6% to $6.43 1/2 per bushel and July soybeans ( S_1:COM ) settled -1.4% to $14.14 1/4 per bushel.

ETFs: ( NYSEARCA: CORN ), ( WEAT ), ( SOYB ), ( NYSEARCA: DBA ), ( MOO )

Adding pressure to grain futures is the strong pace of corn and soybean planting in the U.S., as a large U.S. crop seems increasingly likely.

In its weekly crop progress report issued Monday, the USDA said 49% of U.S. corn has been planted YTD through May 7, exceeding the four-year pace of 42%, while 35% of U.S. soybeans have been planted, also above the 21% four-year average.

U.S. spring wheat remains behind its normal pace, but 24% has now been planted, a jump from the previous week.

Grain markets pulled back from two-week highs reached Monday on doubts about the renewal of the Black Sea corridor deal; Russia has threatened to quit the deal when it expires May 18 .

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