Chicago agri-commodities close lower

CHICAGO, Jan 1 (Xinhua): Chicago Board of Trade agricultural commodities closed lower yesterday with all three major commodities falling on active fund selling.

The most active corn contract for March delivery dropped 9.5 cents, or 2.34 per cent, to close at 3.97 US dollars per bushel. March soybeans dropped 20.5 cents, or 1.96 per cent, to close at 10. 235 dollars per bushel. Wheat for March delivery lost 12.25 cents, or 2.03 per cent, to close at 5.8975 dollars per bushel.

Long liquidation has been the feature Wednesday, as funds appear to be reducing their market exposure to commodities.

Corn fell as the weekly U.S. ethanol data were bearish when weekly production was estimated at 972,000 barrels per day which is 2 per cent less than the previous week. Such production would consume some 103.7 million bushels of corn last week. U.S. ethanol inventories rose 2.7 per cent to 761 million gallons. The report shows import of 18,000 barrels per day, which analysts believe is the first sizable import since spring.

Weather forecast shows rain in Central and North Brazil, a positive sign as frequent rains are needed for crops in the reproductive stage. Crops throughout Argentina and South Brazil are well watered and row crop yield potential looks strong.