Corn futures fell on speculation investors are cashing in gains from an eight-day rally that took prices to a 28-month high. Wheat and soybeans also fell.
March-delivery corn on the Chicago Board of Trade declined 0.6 percent to $6.1975 a bushel at 2:46 p.m. Manila time. Earlier, it gained 0.2 percent to $6.2425 a bushel, matching the price reached yesterday when it touched the highest level since August 2008 on concern dry weather in Argentina and Brazil, the biggest exporters after the U.S., will curb harvests.
Corn’s 14-day relative strength index reached 71 yesterday. Some analysts and traders who study technical charts view levels of more than 70 as a signal of an impending drop.
“We anticipate CBOT corn to decline on profit-taking with the New Year holidays ahead,” Ker Chung Yang, an analyst at Phillip Futures Pte, said in a report e-mailed today. “Investors may tend to reduce their open positions coming into New Year.”
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