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CBOT corn ends down on wetter Midwest weather

CHICAGO: Corn futures at the Chicago Board of Trade closed lower on Monday after weekend rains in the US Midwest and forecasts for more later this week.

Corn closed 1-1/2 to 2-1/4 cents per bushel lower with May down 2-1/4 at $2.27.

Cash dealers had posted 3-1/2 cents per bushel protection in anticipation of a lower opening following the weekend rain that boosted soil moisture in the Midwest.

Weather Services Corp. meteorologist Joel Burgio said early Monday the rainfall would aid soil moisture levels as US farmers gear up for spring plantings of corn and soybeans.

Light to moderate rainfall was expected again this weekend in the Midwest, with the showers moving from west to east, Burgio said.

Heavier rainfall was predicted for early next week in the Midwest, traders said.

Some players squared positions ahead of Tuesday's US Department of Agriculture April supply/demand report due out at 7:30 a.m. CDT.

Analysts did not expect the USDA to change its corn balance sheet in the report. But in future reports, they said, the government may have to cut back on its forecasts for exports and corn feeding due to stiff export competition from China and probable increased feeding of wheat in the United States due to its low price relative to corn.

Friday's CFTC Commitments of Traders report showed that as of April 4, noncommercials including funds were long 123,592 contracts and short 20,210.

Technical traders cited support in the May contract at $2.26-1/2 and resistance at $2.30-3/4.

Funds sold 1,500 lots. FCC bought 1,200 May, FIMAT Futures sold 800 July and 100 December, Refco Inc. sold 500 May and bought 300 May and Cargill Inc. bought 300 May.

Corn futures volume was estimated by the CBOT at 48,000 lots, below the 57,948 lots traded Friday.

Corn options volume was estimated at 16,000 lots.-Reuters