Chicago Board of Trade corn futures were lower at trade on Friday on liquidation ahead of Greece's weekend election and a private forecast for a huge US corn acreage area for 2012. Corn was led lower by profit-taking of the old-crop July/new-crop December bull spread. The spread started this month at 33 cents per bushel premium July, then soared 150 percent to peak at 82 cents on Thursday.
Memphis-based analytical firm Informa Economics pegged 2012 US corn acreage at 96.8 million, above its previous outlook for 96.1 million and above USDA's current forecast for 95.9 million. Corn plants in the southern and central areas of the United States are beginning to pollinate, or produce grain, a time when cool, wet weather is needed for the crop, but forecasts are calling for high temperatures and little widespread rain.
Light showers are expected this weekend in the drier areas of the lower US Midwest corn and soyabean growing areas which will ease stress on crops, an agricultural meteorologist said on Friday. "The big change in the forecast today from yesterday is a little wetter in the lower Midwest. There will be from 0.50 inch to 1.00 inch this weekend in a line from Kansas through Ohio and Michigan which will slow crop deterioration," said Andy Karst, meteorologist for World Weather Inc.
"It won't be enough to fix anything but it will buy the crops more time," Karst said. CIF basis bids for corn shipped by barge to the US Gulf Coast were mostly steady on Thursday, with spot values holding at a one-month high amid tight supplies and limited farmer selling, cash dealers said. July was below all key moving averages. The nine-day RSI was at 47. The July/December was at 73.
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