Reduced demand pulled down corn futures from their top price of five weeks, according to Bloomberg.
That demand pullback came from manufacturers of grain-based fuel, animal feed and food. For week ended November 22, export sales of corn from the U.S. fell 69 percent to amount to 263,140 metric tons as compared to one week prior, according to data released by the U.S. Department of Agriculture. Ethanol production fell 1 percent for week ended November 23 to scrape its lowest in five weeks and chicks placed on feed slumped 3.8 percent last week from one year ago.
"The rally in prices slowed exports and ethanol production," research director Jerrod Kitt with the Linn Group in Chicago told the news source on Friday. "The drop in chicken production also weighed on the market."
At 9:40 a.m. on Friday, corn futures fell 0.63 percent, a 0.0475-cent loss to $7.54 per bushel.
Corn markets are forecast to endure some pressure on Friday as a result of end-of-month selling and the possibility of closing the Mississippi River to barge traffic, according to Agriculture.com.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
