The most active corn contract for May delivery fell 10.75 cents, or 3.03 percent, to close at 3.44 U.S. dollars per bushel. May wheat gained 1.25 cents, or 0.25 percent, to close at 4.99 dollars per bushel. May soybeans rose 2.5 cents, or 0.3 percent, to settle at 8.24 dollars per bushel.
Wheat, soybean futures gained slightly on technical short covering, whereas corn futures has accelerated its decline based on slowing U.S. export and domestic demand.
Goldman Sachs indicated that corn is the best grain to short amid its bearish fundamentals, and argued that corn's use in biofuel and for livestock feed consumption is in decline amid the COVID-19 crisis. The longer-term support for May corn futures may be at 3.2 dollars.
CBOT brokers estimate that funds have sold 8,400 contracts of corn, while being a net buyer of 3,200 contracts of wheat and 4,400 soybeans.
The Dow Jones Industrial rallied more than 1,000 points on news that the U.S. Administration plans to provide immediate emergency funds to Americans in need to stem the building economic damage of home stay. The U.S. Central Bank injected funds into the commercial market to help liquify the corporate debt market. These moves aim to add confidence to consumers and investors. But market analysts hold that a treatment or vaccine for COVID-19 would be much more effective in creating a lasting financial market bottom.
There is no indication of buyers and importers becoming more interested in food import needs amid the COVID-19 virus spread.
Market analysts hold that until COVID-19 demand losses can be qualified, it's hard to pick a CBOT bottom.
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