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CBOT corn ends lower on soy drop, big corn stocks

CHICAGO: Corn futures at the Chicago Board of Trade closed lower on Friday on a sag in soybeans and a reminder of the large supply of corn in the US, traders said.

Corn closed 3/4 to 3-3/4 cents lower with March down 3-3/4 at $2.21-3/4.

Traders said soybeans and corn were hit by recent improved crop weather in South American crop regions and forecasts for more rain there this weekend.

The USDA, in monthly supply and demand reports, sharply hiked its projection for 1999/2000 Chinese corn exports, while lowering its export outlook for the United States.

China, an aggressive seller of corn recently, much of it to South Korea, was now expected to export 8 million tonnes of corn this year, compared to a previous estimate of 5 million and 1998/99 exports of 3.34 million.

The USDA also lowered 1999/2000 US corn exports to 1.950 billion bushels from a previous estimate of 1.975 billion. US corn stocks at the end of 1999/2000 were expected at 1.739 billion bushels, up from 1.714 billion previously. South Africa's estimated corn crop was raised 500,000 tonnes. The adjustments were fairly consistent with expectations and should have limited price impact, traders said. Focus should quickly shift toward weather in South America, where rains in the past two weeks have brought some relief to corn and soybean ground that was stressed by dryness.

Longer-term, traders cited the potential for continued dryness in central US crop areas this spring and summer as a source of concern.

Cargill sold 500 March and 1,000 May near the close, traders said. ADM Investor Services sold 500 March and FIMAT Futures bought 600 May and sold 500 March.

Corn futures volume was estimated by the CBOT at 71,000 lots, below the 80,203 lots traded Thursday.

Corn options volume was estimated at 20,000 lots.-Reuters