Corn Futures Drop as Market Waits on Bailout Plan

Uncertainty in the market and overall economy have investors on the sidelines in a number of categories, and concerning corn futures it's no different.

Most trading in commodities at this time aren't related to underlying fundamentals, rather they're connected to the overall economy and the wait for what the eventual bailout will entail.

As of now, it has been reported today that the House and Senate have a bipartisan agreement in principal, worth near the expected $700 billion is suggested is needed to "fix" the financial sector.

Still, investors are waiting on the sidelines until, and if, the agreement is made law.

Corn futures dropped on Thursday by 5 cents to close the day at $5.58 a bushel for December delivery on the Chicago Board of Trade (CBOT).

Corn Rides Returning Favor of Commodities as Investors run for Cover

December delivery for corn increased by 22 cents a bushel, riding the migration of investors to commodities as they seek shelter from the financial markets. Corn closed at $5.54 a bushel on the Chicago Board of Trade.

Most dollar-denominated commodities were benefactors of the exodus from equities.

Soybeans were also up on the day, increasing by 26 cents to $11.39 a bushel, a 1.3 percent jump.

The U.S. dollar index was down as the greenback fell against most major currencies.

Bunge Ltd. Clears Regulatory Hurdle for Corn Products Deal

The Hart-Scott-Rodino Antitrust Improvements Act has been successfully fulfilled by Bunge Ltd. in its quest to acquire Corn Products International. It involved satisfying a required regulatory waiting period.

While international clearance and approval by shareholders is still waiting in the wings, the deal is expected to close sometime in the fourth quarter.

Bunge sells a number of agricultural commodities and food products. The price range of the stock has traded in a wide swoth of $84 to $135 over the last year.

Bunge has offered about $4.8 billion for Corn Products, which includes assuming about $414 million in debt.

Corn Products will continue operating under its existing brand name.