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CBOT corn futures end lower on weather, deliveries

CHICAGO: Chicago Board of Trade corn futures closed lower in reaction to rain in the Midwest and to a Cargill unit delivering corn against the CBOT March contract, traders and analysts said.

Beneficial rain fell in the Midwest last week and more was forecast this week, which should boost soil moisture in time for spring planting. The hot weather that will blanket much of the Midwest through Wednesday was a concern in Monday's higher futures market but on Tuesday traders focused on the beneficial aspects of the rain.

Also bearish for corn was news Cargill Investor Services (CIS), a unit of grain giant Cargill Inc., posted 649 corn contracts, or 3.245 million bushels, for delivery against the March contract.

"I think it took some people by surprise," Dick Quiter, grain broker with LFG LLC, said of the deliveries.

Deliveries by a commercial firm such as Cargill are often seen as bearish because it would indicate poor demand by exporters or flour processors.

In late trading, CIS and O'Connor each sold 500 May contracts and FIMAT and R.J. O'Brien each sold 400 May, traders said.

Corn closed 4 to 3 cents lower with May off 3-1/2 at $2.25-1/4 per bushel.-Reuters