Chicago agricultural commodity futures all traded lower Thursday, as outside markets turned negative on "fiscal cliff" fears, which weighed on trading most of the day.
The most active corn contract for March delivery fell 1.75 cents, or 0.25 percent, to close at 6.915 dollars per bushel. March wheat lost 2.25 cents, or 0.29 percent, to settle at 7.7225 dollars per bushel. March soybeans fell 4.5 cents, or 0.32 percent, to close at 14.14 dollars per bushel.
According to Chicago Mercantile Exchange (CME), March corn traded slightly lower and the December 2013 contract hit a fresh 5- month low. Slow export demand and poor ethanol margins continued to weigh on futures. Outside markets turned negative midday on " fiscal cliff" fears. This sent the U.S. dollar higher, which pressured the broader commodity complex.
For wheat, early losses were triggered by a risk aversion that swept across the outside markets as many feared no fiscal deal would be reached in Washington. Additional pressure came from technical selling and the absence of any significant export tenders this week.
March soybeans traded lower on weaker outside markets and lack of any fresh demand-side data. Demand remains strong for U.S. soybeans, but with Brazilian harvest just about a month away, some in the market suggest the robust sales pace by the U.S. may slow down.