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Corn futures drop on drier weather in US corn belt

NEW YORK — Corn prices sank Monday as investors took profits from last week's record-setting rally and bet that forecasts for dry weather in the Midwest will allow farmers to speed planting.

Other commodities traded mostly lower, with crude oil retreating after hitting a new record above $126 and gold also falling.

The outlook for warm, drier weather after weeks of heavy rain in the U.S. corn belt is expected to ease planting delays that have driven up corn prices to unprecedented levels. Wet weather in Midwestern states had left fields too soggy for planting, putting farmers far behind schedule.

"They're making more progress because of this improved forecast," said Jason Ward, analyst with Northstar Commodity in Minneapolis. "They're going to cut those delays in half."

Corn for July delivery dropped 14.5 cents to settle at $6.1475 a bushel on the Chicago Board of Trade, after earlier falling as low as $6.1375. Prices surged to a new trading record of $6.39 last week, and analysts said a correction was expected.

"It was a good time to sit back and find some profit takers," Ward said.

Other agriculture commodities traded mostly lower. July soybeans dropped 15.5 cents to settle at $13.425 on the CBOT, while U.S. rice futures lost 23.5 cents to settle at $22.74 per 100 pounds.

July wheat futures, meanwhile, added 1 cent to settle at $8.055 a bushel.

In energy futures, crude oil briefly shot to a new record above $126 a barrel before pulling back on profit-taking. Concerns that a massive earthquake in China will temporarily curb demand also pressured prices.

Light, sweet crude for June delivery jumped to an all-time high of $126.40 a barrel on the New York Mercantile Exchange but later retreated to $124.23, down $1.73 cents. Crude oil has hit record highs for six straight sessions, and analysts said prices were expected to ease following the rally.

Other energy futures also fell on the Nymex. June gasoline futures fell 3.7 cents to settle at $3.1642 a gallon after earlier rising to a trading record of $3.218 a gallon, while June heating oil futures fell 7.62 cents to settle at $3.5598 a gallon.

Meanwhile, precious metals prices mostly rose Monday after the dollar turned lower against the euro. A weaker greenback encourages investors to buy commodities such as silver and copper as inflation hedges, and also makes dollar-denominated commodities appear cheaper to overseas investors.

July silver rose 31.5 cents to settle at $17.225 an ounce on the Nymex, while July copper rose 3.3 cents to settle at $3.7495 a pound.

June gold, meanwhile, fell 90 cents to settle at $884.90 an ounce on the Nymex, after earlier falling as low as $878.50 an ounce.

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