Commodities: Corn plunges after rumors that China is cancelling purchases

Corn prices plunged on the Chicago Stock Exchange on Tuesday, ending the day close to the maximum variation limit for a single session (40 cents). The contract with delivery for July, currently the most-traded contract, fell 5.63% (37 cents) to $ 6.2025 a bushel.

For the next delivery, in September, the fall was 4.79% (27.25 cents), to $ 5.4125 a bushel. The value of the second position contract returned to the level seen on April 6, when it closed at US $ 5.41 per bushel, according to Valor Data.

The fall in prices occurred after rumors indicated the cancellation of purchases made by the Chinese. “We have long held that China will need to postpone some purchases of prior crops until next year due to physical limitations in its ports until the end of August,” Stone X’s Arlan Suderman told DowJones Newswires.

The market also keeps track of information that China is canceling previously announced purchases in order to get better prices with new crops. “This move, if confirmed, may also signal a slowdown in demand,” Matheus Pereira, an analyst at the consulting firm Pátria Agronegócios, told Valor.

Source: Valor Econômico

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