Corn futures dropped to their lowest price in seven days amid slackening demand and a hobbled economic recovery, both of which were prompted by Friday's U.S. credit rating downgrade, Bloomberg reports.
One analyst said corn's dive in price is symptomatic of the market's life and times during the volatile days of the market.
"It's definitely the broader economic weakness we're seeing" that are burdening the market, analyst Erin FitzPatrick of Rabobank International in London told Bloomberg. "Any of the underlying fundamentals are being overshadowed by the broader market. In the case of corn, we did see that conditions in the U.S. continue to deteriorate. Weather needs to improve in the U.S. Fundamentals still remain fairly tight."
At 7:28 a.m. on Tuesday, corn futures dropped 0.44 percent, a .03 cent slip to $6.83 per bushel.
Reuters reports policymakers from the U.S. Federal Reserve were preparing to meet on Tuesday though no major changes to policy were apparent.
Tuesday began with futures markets partially rebounding from Monday's sharp fall while investors directed attention to the central bank to determine what sort of intervention would ensue to deter the onset of a recession.
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