20000120CBOT corn closes firm as soyabeans rally

CHICAGO: Corn futures at the Chicago Board of Trade closed firm on Tuesday on a rally in soyabean futures and lingering support from last week's bullish USDA crop production and supply/demand reports, traders said.

Corn closed unchanged to 1-1/4 cents higher with March up 1 at $2.20.

Corn ended firm but it languised at lower levels in early dealings on a setback from the rally late last week and on increased farmer movement.

Cash corn bids were mixed around the US Midwest early Tuesday, with some merchants noting continued pressure on prices from a significant increase in grain movement last week. Some dealers posted 2 cents protection on corn bids early Tuesday in anticipation of weaker futures.

The increased farmer selling was triggered by a rally in CBOT prices, with March corn ending Thursday at a 3-1/2-month high of $2.20-3/4. Farmer selling typically leads to hedging pressure on futures.

Technically, the corn market was poised for a correction lower after last week's gains, said traders, who voiced some uneasiness over a large buildup recently in speculative long positions in the corn market.

The latest Commitments of Traders reports from the Commodity Futures Trading Commission indicated that funds were substantial buyers in corn futures during early 2000.

The CFTC said that as of Jan. 11, noncommercial interests, which are primarily funds, held 64,791 long futures contracts in corn and 41,877 shorts, for a net long of 22,914. As of Dec. 28, noncommercials held a net short of 2,177 contracts.

In export news, Korean feed interests bought 105,000 tonnes of corn from China earlier Tuesday, traders in Asia said.

Funds bought 1,000 lots. R.J. O'Brien bought 500 March, E.D. & F. Man International sold 1,200 March contracts, Refco Inc. sold 600 March, Prudential Securities bought 1,000 May and 400 March, Cargill Inc. bought 600 March.

Corn futures volume was estimated by the CBOT at 90,000 lots, below the 102,408 lots traded Friday.

Corn options volume was estimated at 25,000 lots.-Reuters