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Corn ends down on

profit taking, China eyed

CHICAGO: CBOT corn futures closed lower after a record peak was scaled early, with the late slide tied to profit taking amid signals the market is overbought, traders said.

But concerns about potential corn exports from China and Brazil also were cited as contributing to the lower close.

"Today was one of taking profits and it was a little negative on talk China may export corn and talk Brazil may export corn," said Paul Haugens, vice president for FIMAT Futures. "I don't think anything has been done but they are studying it."

There was news early Tuesday China approved the export of 1.5 million tonnes corn to South Korea and Japan. Also, analysts and government officials in Rio De Janeiro Tuesday said high corn prices are encouraging corn exports by Brazil.

Fund action Tuesday was about evenly divided between buyers and sellers.

The all time high of $4.38-1/2 per bushel was set in the May early, up from the previous high of $4.37-3/4 set Monday. New contract highs were set in the deferred months.

Corn closed 1/2 to 4-1/2 cents lower, with May down 3/4 at $4.35.-Reuter