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CBOT corn ends up near one-month high on weather

CHICAGO: Chicago Board of Trade corn futures closed higher Monday and near one-month highs with the market buoyed by fund buying amid dry weather concerns in the US Midwest, traders said.

Corn closed 3 to 4-1/4 cents higher with March up 3-3/4 at $2.23-1/2. May closed 4 higher at $2.30-3/4.

May moved to a session high of $2.31-3/4, the highest level for that month since $2.32 was notched on Feb. 17.

"They took some rain out of the forecasts for the week so there area no big weather systems in the works right now for the Midwest," said Dick Quiter, analyst for LFG.

Weather Services Corp. meteorologist Joel Burgio said early Monday that only scattered rainfall was likely this week in the Midwest but some light rain was expected to hit several pockets of the dry western Midwest.

Meanwhile, US Commerce Secretary William Daley, in a statement early Monday, said a spring drought was forecast for Iowa, Illinois, Indiana and Nebraska.

"The drought of 1999 remains with us in the new century -- and our data indicates drought conditions are probably going to get worse before they get better," Daley said. cities in separate postings over the past 20 years, has a reputation as "Mr Clean" and is known for good administrative skills, the sources added. Warmer, drier weather has left soil moisture levels at critically low points in several key Midwest crop areas and rainfall was needed to ensure a healthy start for the soon-to-be-seeded crops.

News from the export front pointed to stiff competition for US corn. South Korea's National Livestock Cooperative Federation bought 77,500 tonnes of corn from Toepfer via tenders on Monday. But it passed tenders to buy an additional 25,000 tonnes of corn due to high prices, traders said.

The purchased tenders were split into one lot of 52,500 tonnes of Chinese or US No. 3 corn by option and two lots of 12,500 tonnes of Chinese corn each, they said.

The traders said South Korean grain buyers were expected to seek more Chinese corn this week. Chinese corn is quoted at around $107 per tonne on a cost and freight basis, while US corn prices rose to over $120 due to rising freight rates, traders said.

Technical traders Monday cited support in May corn at $2.25-1/2 and resistance at $2.30-1/2.

Funds bought 8,000 lots. Carr Futures bought 1,200 May, O'Connor and Co. bought 1,000 May, Merrill Lynch Futures bought 1,000 July, Salomon Smith Barney bought 1,000 July and Cargill Inc. sold 1,200 May.

Corn futures volume was estimated by the CBOT at 100,000 lots, above the 47,904 lots traded Friday.

Corn options volume was estimated at 24,000 lots. -Reuters