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CBOT corn ends down as exports disappoint

CHICAGO: Corn futures at the Chicago Board of Trade closed lower on Thursday under pressure from disappointing US exports and improving Midwest weather.

Corn closed 2-1/2 to 4-1/2 cents lower with May down 4-1/4 at $2.30-1/4.

"It's weather but I keep looking at the calendar and it's only March. But it's true the rains that are moving through will definitely aide the soil moisture levels," said Shawn McCambridge, analyst for Prudential Securities.

Key corn and soybean growing states in the US Midwest will receive light showers late on Thursday through Friday and additional rainfall is expected Sunday through Monday, Weather Services Corp. meteorologist Joel Burgio said. Burgio said drier weather was likely Saturday but additional rainfall was likely beginning overnight Saturday with the heavier amounts of rainfall likely in the western portion of the Corn Belt.

From 0.25 inch to 1.00 inch is likely in the western Corn Belt Saturday with scattered rainfall again likely Sunday and Monday moving from west to east across the Midwest, he said.

The export picture remained somewhat lethargic with persistent hints at the stiff competition for business continuing to surface.

The US Department of Agriculture's weekly export sales report, released before the market opened, showed net export sales of US corn during the week ended March 16 at 531,700 tonnes, below estimates for 550,000 to 900,000 tonnes.

The net export sales total was 32 percent below the previous week and 49 percent below the four week average, according to the USDA.

In another sign of increasing competition in the export market from China, Beijing was expected to sell corn to Taiwan following Taiwan's scrapping of a ban on direct trade between some of its islands and certain Chinese cities.

Asian traders said overnight that the new trade links could affect suppliers of US corn. Taiwan is a regular buyer of US agricultural products.

Funds sold 6,000 lots. E.D. & F. Man International sold 2,000 May, Refco Inc. sold 1,300 May, R.J. O'Brien sold 500 May, Rand Financial sold 300 May, Iowa Grain sold 200 May and Cargill Inc. bought 400 July.

Corn futures volume was estimated by the CBOT at 64,000 lots, above the 43,856 lots traded Wednesday.

Corn options volume was estimated at 15,000 lots.-Reuters