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CBOT corn closes lower on brighter weather outlook

CHICAGO: Corn futures at the Chicago Board of Trade closed lower Tuesday as weather in the U.S. Midwest improved after recent forecasts for a spring drought.

Corn closed 1 to 3-3/4 cents lower, with May down 3-3/4 at $2.32.

"Weather continues to be on the wet side, plus the fund selling drove it down," said Ron Kucha, floor spokesman for O'Connor and Co.

The fund selling Tuesday was estimated at least 3,300 lots.

Heavier-than-expected weekend rains in the Midwest growing region helped to ease concerns raised last week of possible drought-like conditions this spring and summer.

Weekend rains battered futures Monday and traders said there was follow-through pressure Tuesday.

Weather Services Corp. meteorologist Joel Burgio said early Tuesday that weather patterns now through at least the end of next week indicate improved spring seeding conditions and a potential quick start for corn and soybean plantings.

"The rain and potential for more rain next week makes it look good for spring fieldwork and plantings," he said.

The extended outlook from Sunday through Thursday was for above normal temperatures in key U.S. corn and soybean states and near to above normal rainfall with the heavier rains likely in the western and southern portion of the Midwest, he said.

Monday's National Weather Services six- to 10-day outlook was for normal to above-normal temperatures and rainfall in the Midwest from Sunday through Thursday.

An unseasonably warm and dry winter has depleted soil moisture in many areas of the Midwest and timely rains were needed before and after seedings.

The export market remained crowded with competitors for the corn and other feedgrain export business.

Turkey's state grain board said on Tuesday it would tender on March 29 for up to 300,000 tonnes of corn from the United States, Hungary and Romania to meet domestic demand.

Of the total, up to 200,000 tonnes will be of U.S. origin, 55,000 tonnes Hungarian and 45,000 tonnes Romanian origin.

South Korea's Samyang Genex Corp. bought 52,500 tonnes of Chinese or U.S. No. 2 yellow corn on Tuesday. Chinese corn will be sourced from Inner Mongolia, with non- genetically modified certification, while Samyang Genex will not require nonmodified certification for U.S. corn, traders said.

Funds sold 3,300 lots. O'Connor and Co. sold 2,300 May, Tenco Inc. sold 400 May, Refco Inc. sold 500 December, Lind Waldock sold 500 December and Cargill Inc. bought 500 May, 300 July and 300 December. Tenco Inc. spread 800 December/July at 15-1/4 to 15-1/2 cents, premium December.

Corn futures volume was estimated by the CBOT at 60,000 lots, below the 65,629 lots traded Monday.

Corn options volume was estimated at 18,000 lots.ÑReuters