Corn Futures Slide 1.8% as Traders Lock In Gains

Chicago Board of Trade corn futures fell as much as 1.8% on Wednesday, the largest intraday decline since Aug. 13. The most-active contract led losses in the U.S. grain complex as wheat and soybeans also eased during regular trading.

The pullback followed a strong August rally. An agricultural commodity index that tracks 10 major products rose more than 13% in August, the largest monthly gain since July 2012.

Market buying during August was driven by disruptions to Black Sea export routes and heat stress in key growing regions, which raised concerns about global supplies and crop yields. Commodity Futures Trading Commission data show speculators’ net bullish position in corn reached a four-year high in the latest report.

Profit-taking by hedge funds and other speculators contributed to Wednesday’s decline as some investors sold long positions to lock in gains. Liquidation of large long positions at the same time put downward pressure across related contracts, deepening the pullback.

Traders described the drop as a correction rather than a full reversal of August’s gains. They are watching weather forecasts for major growing areas and developments affecting Black Sea shipments for signs of renewed supply pressure. Volatility in the grain complex has been elevated while geopolitical risks and weather outcomes remain uncertain.