CHICAGO, Oct. 27 (Xinhua) -- Chicago Board of Trade (CBOT) agricultural futures fell across the board on Tuesday, led by wheat.
The most active corn contract for December delivery slipped 1.75 cents, or 0.42 percent, to close at 4.16 U.S. dollars per bushel. December wheat fell 4.25 cents, or 0.69 percent, to settle at 6.1575 dollars per bushel. January soybean shed 7 cents, or 0.65 percent, to close at 10.765 dollars per bushel.
CBOT agricultural futures dropped on profit taking as there is an "air" of correction in the marketplace, Chicago-based research company AgResource noted. The U.S. presidential election is in a week, and fund managers are taking risk off the table, not adding it.
Nevertheless, cash basis bids and nearby futures spreads are holding stout.
U.S. end users have been caught short and booked along with massive Chinese demand which more than absorbed the harvest pressure, AgResource said.
U.S. Department of Agriculture (USDA) did not report any new daily sales on Tuesday. U.S. exporters said Chinese demand for U.S. corn and soybean has really slowed down. There has been a rather dramatic slowdown in Chinese demand for US soybeans and corn in the past six days.
A daily chance of rain exists across Brazil with the best rains to start Friday and continue across North Brazil into early next week. The wet trend is maintained throughout next week. The coming moisture is quickening the pace of corn and soybean planting throughout South America.
Hedge fund risk managers are reducing market exposure heading into next Tuesday's U.S. election. AgResource expected increasing volatility depending on the U.S. election results. As corn and soybean are technically overbought and in need of a correction, and China demand for U.S. soybeans has dramatically slowed in recent days, a correction may befall amid improving South American and Southwest Russian weather. However, AgResource predicted that it is tough to be overly bearish until large South American crops are made.