CBOT corn touches one-week low on technical trading, US rain forecasts

Chicago Board of Trade corn futures slumped on Wednesday on technical trading, as news of renewed fighting in the Middle East shifted managed money out of different markets - including agriculture - into the energy complex, market analysts said.

• Most-active December corn CZ26 finished 8-3/4 cents lower at $4.71-3/4 a bushel.
• Earlier in the session, the most-active corn contract on a continuous basis Cv1 touched down to $4.70-3/4 a bushel, the lowest price since July 21.
• Forecasts for improving weather in the U.S. Corn Belt also weighed on grain markets, following a hot weather spell, market analysts said. Meteorologists are predicting rain near the end of the week, which is vital for the corn crop as it enters the key pollination stage.
• Oil prices climbed about 7% on Wednesday as airstrikes resumed in the Middle East, adding to worries about dwindling supply as U.S. government data showed domestic crude inventories fell to a multi-year low. O/R
• A drone hit a U.S.-owned gas storage tanker at Egypt's Mediterranean port of Damietta, British maritime security firm Ambrey said in an initial assessment on Wednesday, in a potential spread of the Middle East war.
• But prices did gain some support from Asian demand for corn imports, which has been brisk this week as traders said some buyers fear that CBOT corn prices could rise due to declining U.S. crop conditions.