Corn on Wednesday fell due to a decline in global demand of the grain for food, fuel and animal feed following speculations that the interest rate cut by the U.S. Federal Reserve might not stop the economy from going into a recession.
According to data released today by the Department of Commerce, U.S. economic growth fell to an annual rate of 0.6 percent in the fourth quarter, half the rate forecasted.
Corn futures for March delivery declined by 3.5 cents or 0.7 percent to $4.975 a bushel on the Chicago Board of
In January, corn prices increased by 9.2 percent, posting the highest record of $5.1925 on Jan.15 after a 17 percent increase last year boosted by high demand from ethanol producers and feed for livestock.
Soybean futures for March delivery increased 3.5 cents, or 0.3 percent, to $12.7025 a bushel while the prices in January increased by 4.6 percent.
Last year, soybean futures reached a record high of 78 percent after the U.S. farmers planted few acres of the soybean.
Concerns that corn demand in Mexico will decline also contributed to the fall of the grain, following a statement from the Mexican Finance ministry that the country's economic growth will slow to 2.8 percent in 2008 from an estimated 3.2 percent in 2007.
According to U.S. government figures, in 2006, corn was valued at $33.8 billion becoming the biggest U.S. crop followed by soybeans which was valued at $19.7 billion.