Chicago corn futures dipped in Asian trading on Wednesday, as traders chose to pocket profits from recent gains spurred by expectations of tight US supplies, while risks of a global economic slowdown fuelled concerns about demand prospects.
The most-traded corn contract on the Chicago Board of Trade (CBOT) was down 0.3 percent at $6.90-3/4 a bushel, extending losses after prices hit their strongest level since June 27 on Monday.
US corn and soybean supplies will fall to multi-year lows, as hot and dry weather during August in western growing areas cut harvest potential, according to a report released by the US Department of Agriculture on Monday.
But lower demand could offset the tightness in global grain supply, analysts said.
Overall investor sentiment was gloomy following a white-hot US inflation report that fueled bets for higher interest rates, which could slow down the global economy and dampen demand for commodities.
