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CBOT corn closes lower on weather, soybean break

CHICAGO: Chicago Board of Trade corn futures closed lower Wednesday on a late break in soybeans, improved crop weather and heavy deliveries posted Wednesday against the March contract.

Corn closed 1/4 to 1-3/4 cents lower with March down 1/4 at $2.14-3/4. May was 1 cent lower at $2.23.

The market was sluggish amid the absence of any large-volume export business overnight, signalling stiff competition in the export market despite poor prices.

But news came after the close that Russia was seeking US corn.

Russia will tender on March 14 to purchase 237,000 tonnes of US corn under the PL-480 Title I programme, its agent Granitex Inc. said Wednesday.

The tender, which comes after a tender for a similar amount of corn was abruptly cancelled on Feb. 16, is for shipment between March 25 and April 15, a Granitex official said.

Recent rainfall in the US Midwest helped allay concerns about dry soils, but crop experts and meteorologists say more moisture is needed in the Midwest to replenish soil moisture reserves.

The market also noted the heavy delivery notices surfacing this week on the March contract. Tuesday was first notice day, and on Wednesday another hefty 3,673 lots of corn were posted for delivery against the March.

Some underpinning came from oversold signals and the desire to build a weather premium in the market in case of dry weather this spring and summer in the US Midwest.

Slow farmer selling and relatively firm cash basis markets also were stemming declines.

Chart watchers cited support in May corn at $2.21 and resistance at $2.25-1/2. May closed at $2.23.

Funds sold 600 lots. Cargill Inc. bought 500 December, 300 March and 200 May. FIMAT Futures bought 1,200 May and sold 400 May. Prudential Securities sold 400 May, Refco Inc. sold 600 May, ADM Investor Services bought 500 December and sold 400 March. Cargill Inc. spread 1,600 March/May at 8-3/4 to 8-1/4 cents, premium May.

Corn futures volume was estimated by the CBOT at 98,000 lots, below the 121,971 lots traded Tuesday.

Corn options volume was estimated at 12,000 lots.-Reuters