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CBOT corn closes higher as farmer selling slows

CHICAGO: Corn futures at the Chicago Board of Trade closed higher on Thursday on a slowdown in farmer selling and on lingering support from last week's bullish USDA January crop production and supply/demand reports, traders said. Corn closed 3/4 to 2-1/4 cents higher with March up 3/4 at $2.20-3/4.

But gains were limited by an early corrective setback from recent gains and concerns over export competition from China, traders said.

Export activity this week provided traders with more reminders of the upper hand world grain buyers hold over sellers, traders said. While the US corn supply outlook for 2000 was lower than previously thought, buyers still had relatively abundant supplies from which to draw.

Late Tuesday, South Korea's Woosung Feed Co Ltd bought 176,000 tonnes of Chinese corn, traders in Asia said on Wednesday.

South Korea's National Livestock Cooperatives Federation invited tenders to buy 192,500 tonnes of Chinese corn on Thursday, traders in Asia said on Wednesday. Technically, the corn market appeared overbought and poised for a pullback after rallying last week, traders said.

March corn registered at about 74.4 on the nine-day Relative Strength Index at Tuesday's close, which technicians considered overbought territory.

Rand Financial Services sold 1,000 March contracts, FIMAT Futures Inc. sold 300 March, ADM Investor Services and E.D. & F. Man International each bought 200 March and Farmers Commodities Corp. bought 200 May, traders said.

Funds bought 1,500 lots. Rand Financial Services sold 1,000 March, R.J. O'Brien & Associates sold 500 May, Cargill sold 400 March, FIMAT Futures Inc. bought 1,200 May and sold 300 March, E.D. & F. Man International bought 600 March and Merrill Lynch bought 500 March. In options, ADM Investor Services bought 800 March $2.40 puts.

Corn futures volume was estimated by the CBOT at 55,000 lots, below the 75,031 lots traded Tuesday.

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