Corn Falls As Some Traders See A Top
Corn prices rallied to their highest level in two years Monday before retreating to end down for the day. Traders backed away from fears that a late U.S. harvest and an impending frost in China might limit supplies.
Corn for December delivery fell 5 cents, or 1 percent, to settle at $5.0825 a bushel. The price has risen nearly 40 percent since the end of July.
Prices opened higher in the morning, reaching $5.2225 before sliding as low as $5.075.The fact that prices fell after opening so strongly suggests many traders might have found a "top" for corn, said Spencer Patton, founder and chief investment officer for hedge fund Steel Vine Investments LLC. Corn prices have been climbing steadily on fears that the U.S. crop would be shy of a government prediction of a record-harvest. But it appears even the most pessimistic traders don't think the supply pinch can justify prices of $5.22 a bushel. "Even though prices started out on their best foot, they got crushed," Patton said. "I would be looking for a pullback in the next couple of days." In other trading, soybean prices added 15.5 cents to reach at $10.845 a bushel. Soybeans have risen along with corn prices over the last few weeks, with many traders worried that a frost in China this week could hurt supplies there. December wheat contracts fell 7.5 cents to $7.3175 a bushel. Gold for December delivery rose $3.30 to $1,280.80 an ounce. Some analysts believe the price could top $1,300 an ounce. In other December metals contracts, silver fell 1.3 cents to $20.803 an ounce and copper fell 1.75 cents a pound to settle at $3.5045 a pound. October platinum gained $10.10 to $1,632 a pound while September palladium fell $3.80 to $539.50. Oil prices rose after a new report Monday said the longest recession the U.S. has endured since World War II ended in June 2009. The report from the National Bureau of Economic Research, a panel of academic economists based in Cambridge, Mass., sent stocks higher, with the Dow Jones industrial average gaining 146.
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