COM - U.S. corn slumps to 18-month low as China cancels more purchases

2023-05-17 18:11:44 ET

Benchmark U.S. corn futures fell to an 18-month low Wednesday following news that China canceled more previously announced purchases of U.S. corn exports, this time for 272K metric tons for delivery in the 2022-23 marketing year.

It is the latest of a series of cancellations announced by the U.S. Department of Agriculture this spring, and follows China's release of more weak economic data, raising concerns in the grains over the country's demand for agricultural commodities and other raw materials.

Wheat futures also fell sharply after the Black Sea grain deal was extended for another 60 days , allowing for the export of grain from Ukraine.

Corn on the Chicago Board of Trade ( C_1:COM ) for July delivery closed -3.4% to $5.61 1/2 per bushel, after sliding as low as $5.54 1/4, the lowest for a most-active corn contract since November 2021.

CBOT July wheat ( W_1:COM ) also settled -3.4% to $6.25 1/2 per bushel after reaching a two-week low $6.16, and soybeans ( S_1:COM ) also hit multi-month lows, with the July contract ending -2% to $13.37 per bushel, just above the session-low $13.34, the worst level for a benchmark soybean contract since July 2022.

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

Meanwhile, the U.S. corn and soybean crops are off to a good start, with a faster than average planting pace and mostly good weather.

"Positive catalysts are percolating, [but] wait for a buy" on the Teucrium Wheat ETF ( WEAT ), Macrotips Trading writes in an analysis published on Seeking Alpha .

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