CHICAGO, April 15 (Xinhua)-- Chicago grain prices extend losses on Friday, as Goldman Sachs(NYSE:GS) suggested investors liquidate long positions in commodities as they feel the markets could be reversing in the near term. Wheat bounced off, ending a three-day losing streak on bargain hunting, soybean also advanced.
The most active corn contract for May delivery dropped 12.25 cents, or 1.6 percent, to close at 7.42 U.S. dollars per bushel. May wheat added 3.75 cents, or 0.5 percent, to 7.4425 dollars per bushel. May soybean rose 0.75 cents, or 0.1 percent, to 13.3175 dollars per bushel.
Goldman Sachs suggested Friday that investors should close out certain commodities bets, including a oil, cotton, and soybeans. Traders mentioned that the recommendation from Goldman Sachs did spark continued long liquidation selling across the grain market.
Meanwhile, China's consumer price index advanced 5.4 percent in March, compared to a year earlier, outpacing economists' forecasts of a 5.3 percent jump, and ranked as the fastest since July 2008.
A trader said that the grain market suffered some pressure as the higher-than-expected CPI data rekindled concerns for tightening measures by China, which may curb the demand for grains.
"The story for grain right now and moving to next 90 and 100 days is going to be weather. That is all that matters," said Tres Knippa, Lotus Brokerage CEO, "Because the world ending stocks(of corn) are so low, Everybody is going to keep a close eye on weather and everything has to be exactly perfect," Knippa added.
As for the wheat market, analysts said that the ideas that the wheat crops in Kansas may get some rain this weekend continued to weigh on the market, as the rain will boost crops conditions and ease concerns for sharply lower yield potential.
Meanwhile, the recent deep correction in wheat market also encouraged bargain hunters to step in and buoy up the prices.
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