Corn futures edged higher in Chicago on technical signals that a five-day losing streak was overdone. The most-active contract rose 0.3% after falling to its lowest level since August 12. The 14-day relative strength index remained below 30 for a third session, indicating prices had fallen too much and were due for a rebound.
Mike Verdin, senior markets consultant at CRM Agri Commodities, noted the market is technically oversold, which could limit further selling and attract buyers. Corn prices dropped over the past three weeks amid harvest pressure and weak exports in the US, prompting hedge funds to sell positions rapidly. As of latest USDA data, 44% of the American corn crop is harvested, while inspections of the grain for export dropped nearly 50% week-on-week in the period ended Oct. 15.
Money managers' net-long position on corn hit a two-month low in the week ended Oct. 13 as funds sold across the grain complex. Meanwhile, corn futures in Paris rose as much as 1.7% amid tight supplies from a poor European harvest and disruptions to Ukrainian supplies. Stronger European prices are drawing attention in the US, with Europe buying unusually large volumes of American corn.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing