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CBOT corn ends higher on soy strength, fund buying

CHICAGO: Corn futures at the Chicago Board of Trade ended higher on Thursday, boosted by strong gains in soybeans that pushed news of poor US weekly exports to the back seat on the last trading day this year.

CBOT corn futures settled 3/4 to 1-1/4 cents per bushel higher, with March up 3/4 at $2.04-1/2.

Commodity funds bought 1,100 contracts on the day. Confetti filled the air at the exchange as the closing bell rang out 65 minutes early. The CBOT is closed Friday.

"Corn was following beans," said floor commentator Vic Lespinasse of AG Edwards at the CBOT.

Soybeans raced higher from the opening bell amid renewed concerns over the weather in Brazil, the world's second largest producer after the United States.

The market also gained from lower-than-expected deliveries posted Thursday, the first notice day for January futures.

Dryness was also a concern for Argentina, a major corn producer and exporter. Mostly dry conditions were forecast for the next five days for Argentina, Weather Services Corp. said.

The spillover strength from soybeans helped corn to paper over disappointing weekly US exports.

The US Department of Agriculture, in its weekly export sales report issued before the market opened Thursday, put net US corn sales for the week ended Dec. 23 at 538,900 tonnes.

The tally was a marketing-year low and 44 percent under the four-week average. The number also fell shy of expectations ranging from 600,000 to 850,000 tonnes.

In overnight export news, the Korea Corn Processing Industry Association bought 52,500 tonnes of US corn but passed on tenders to buy another 52,500 tonnes of Argentine or US corn, citing high prices, traders said.

Fundamentals for corn remained weak amid abundant worldwide supplies and stiff competition for the United States in export markets, especially from China for business in Asia.

Refco Inc. bought 100 May, 600 March contracts, Carr Futures bought 300 March, O'Connor bought 200 March, ADM Investor Services sold 300 March, bought 100 March, Iowa Grain sold 200 March, 100 July.

Corn futures volume was estimated by the CBOT at 22,000 lots, compared with the 28,859 lots traded Wednesday.

Corn options volume was estimated at 8,000 lots.-Reuters