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CBOT corn closes up on Russian interest, weather

CHICAGO: Corn futures at the Chicago Board of Trade ended higher on Monday as concerns over dry weather in South America resurfaced, traders said.

News of Russian interest in U.S. corn also boosted prices, they said.

Corn closed 1-1/2 to 2 cents higher, with March up 1-3/4 at $2.21-1/2.

"I think it was all weather related and mainly from the information coming out of South America," a trader said.

Argentina and southern Brazil were mostly dry over the weekend and should remain so early this week, Weather Services Corp. said Monday.

The weather outlook should fuel concern over the production outlook for Argentina, one of the world's leading corn growers and exporters, meteorologists said. Southern Brazil and much of Argentina have suffered from below-normal rains since the start of the planting season, though widespread rainfall last week in southern Brazil provided some relief.

The export picture zeroed in on possible Russian buying of U.S. grains, but traders said they were sceptical of any large volume sales to Russia.

Granitex USA Corp., Russia's U.S. export agent, said late Friday that Russia will seek a total of 237,000 tonnes of corn under the PL-480 Title I export donation programme.

Technical patterns for corn prices appeared stronger after a late market rebound Friday, analysts said. The Linn Group, a Chicago trading firm, said a close above $2.23-1/2 in March futures would project a climb near or above the January high of $2.28-1/4.

Gains were limited by the large supply of feedgrains worldwide and by continued competition for export business from China, which sold at least 515,500 tonnes of corn over the past week to South Korean interests.

Funds bought at least 400 contracts. Carr Futures bought 500 May, Cargill sold 200 March and 400 May and ABN AMRO Inc. sold 400 March. Shortly before the close, Refco sold 250 March. In options, Cargill bought 800 July $2.20 puts.

Corn futures volume was estimated by the CBOT at 46,000 lots, below the 85,570 lots traded Friday.-Reuters