Chicago Corn Prices Decline After Five-Session Losing Streak

Chicago corn futures have been on a five-session losing streak, marking their longest decline since June. The most-active contract fell by as much as 1.1% on September 9.

The recent rally in corn prices was fueled by unfavorable US weather and disruptions to grain supplies from the Black Sea region. As a result, investment funds increased bets on further gains in corn prices.

However, with no new bullish catalysts, record long positions began to amplify the price correction. The 14-day relative strength index (RSI) moved above 70, indicating that the market had become overbought.

The start of the US new-crop harvest has also put pressure on corn prices. As of September 6, US farmers had harvested 5% of the corn area, with progress running ahead of last year's pace.