Corn futures at the Chicago Board of Trade were higher early on Tuesday, before a speech by President George W. Bush that is expected to place extra focus on alternative fuels including corn-based ethanol, traders said.
At 10:26 am CST (1626 GMT), CBOT corn was up 1 to 6 cents per bushel, with March up 2-1/4 at $4.06-1/2 per bushel. Traders said R.J. O'Brien bought 100 March and SAK Futures bought 300 December.
Traders said the grain markets were focused on Bush's State of the Union address, scheduled for Tuesday night. Analysts expect Bush to call for a massive increase in the amount of fuel ethanol that US refiners will be required to mix with gasoline in coming years.
Corn may lose some of its bullish momentum amid perceptions that the 10-year high in corn prices may be cutting into demand for corn from the livestock and export sectors.
Trade sources in Tokyo overnight Monday said high corn prices may spur some Japanese farmers to call it quits this year. Prospects for a big production year in the United States and in South America were also acting as a an anchor on corn futures prices. Oat futures were up 1-1/4 cents per bushel to down 1/4 cent, with March up 1-1/4 at $2.68-1/4 per bushel.
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