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CBOT corn ends higher weather, report, and exports

CHICAGO: Chicago Board of Trade corn futures closed higher on a mix of speculative and local buying that may have been prompted by concerns dry weather will return to the Midwest and by the need to balance accounts ahead of USDA's supply and demand reports on Friday, traders said.

Beneficial rain fell in the Midwest this week but traders said amounts have been less than forecasted. Talk has circulated that hot, dry weather will soon return to the Midwest.

Russ Bigley, meteorologist at Strategic Weather Services, said more rain was likely this week in the Midwest, but by late next week it appears hot and dry conditions will return.

Shawn McCambridge, analyst with Prudential Securities, said the weather may have been primary reason for higher corn futures, but balancing accounts ahead of the USDA reports probably induced some buying.

McCambridge doubts there will be many changes to USDA's corn numbers. USDA reduced its corn export projection in the February report and McCambridge expects that figure to be unchanged at 1.95 billion bushels in Friday's report.

Exports have been good and were partially behind Thursday's gains in the futures. USDA early Thursday reported net export sales of US corn during the week ended March 2 at 1,372,400 tonnes, which exceeded trade expectations that ranged from 650,000 to 1,100,000 tonnes.

CBOT corn closed 1 to 2 cents higher with May up 1 at $2.27-1/4 per bushel.-Reuters