U.S. corn futures fell more than 1.6 percent Tuesday after crop data was reported by the USDA, extending the previous day's drop when they fell by the maximum daily trading limit of 30 cents. Soybean futures, on the other hand, rose to an all-time high at $16.20 per bushel on the Chicago Board of Trade on concerns about low domestic stocks, marking a record for the second day in a row.
U.S. traders had been waiting for the release of the USDA report after the worst flooding in 15 years in the Midwest. Concerns had been increasing that there would not be enough corn to meet the growing demand. The USDA said American farmers intend to plant 87.3 million acres of corn this year, up 1.3 million from their March intentions.
The estimated rise in planted corn acreage triggered profit-taking, said Koji Suzuki, a senior analyst at SBI Futures Co Ltd. He expects trading to stay volatile in the months ahead. "The interest will now shift to yields and the growth of the crops planted," he said.