Corn futures at the Chicago Board of Trade were firm on Tuesday as concerns waned about a bird flu outbreak in the United States, traders said.
Traders said the market was moving higher as it appeared that the US strain of bird flu did not pose a threat to humans and would not cause a decline in feed consumption. Corn fell last week on worries that poultry feed demand would suffer after the bird flu was discovered in some flocks on the East Coast.
CBOT corn futures were about a penny higher across the board by 11:10 am CST. The March contract was 1 cent higher at $2.83-1/2.
Fimat Futures and Refco Inc were among the featured buyers of corn, traders said.
Corn was underpinned by tight US stocks due to strong domestic and export demand. The market anticipates brisk export sales of corn to Asia this year as China backs down a bit from the corn export market.
Industry sources in Hong Kong said over the weekend that China might resume corn exports in March but on a small scale, which would likely force its biggest customer, South Korea, to seek corn from the United States or South America.
CBOT oat futures were 1/4 cent to 3 cents higher on a mild recovery from Friday's lower close. March oats were 3 cents firmer at $1.51-1/2.
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