Follow-through selling from a sharp price drop on Wednesday and some outlooks for showers next week in the US Midwest pressed corn futures on the Chicago Board of Trade to a lower close Thursday, traders said.
The volume was thin and lacked clear direction amid opposing forecasts for Midwest weather patterns, they said.
"It was a real lacklustre day. Weather forecasts were widely varied for next week," said Vic Lespinasse, floor spokesman for A.G. Edwards and Co.
Corn futures closed unchanged to 2-1/2 cents per bushel lower. New-crop December was down 2-1/2 at $2.37-1/2 per bushel.
Volume was estimated by the exchange at 101,703 futures and 28,642 options.
Traders said some outlooks for showers next week in the Midwest weighed on the market but there also were forecasts for a return to dry and hot weather.
Meteorlogix weather service early Thursday was not optimistic that much, if any, rain would fall soon on the dry areas of the Midwest.
The region was expected to continue to see hot and dry conditions this week, with above normal heat and dryness likely to linger until at least the middle of August, a Meteorlogix forecaster said on Thursday.
"It looks like this dry pattern will continue at least through the middle of the month," forecaster Mike Palmerino said. "It will continue to deteriorate soil moisture conditions in areas of the Corn Belt already fairly dry."
Updated export information was given a neutral nod by traders.
The US Agriculture Department early Thursday said US export sales of corn last week totalled 540,600 tonnes (old and new crop), within the range of estimates for 475,000 to 700,000 tonnes. Exports were quiet overnight.
Corn traders awoke Thursday to news that Japan had found a seventh US cargo tainted with Bt-10 biotech corn. The Japanese government told the importer to destroy it or send it back to the United States.
China's corn exports for the 2004/05 marketing year are estimated at 7 million tonnes, 1 million higher than a previous estimate, the US Agriculture Department said in an attache report.
Cash basis bids for corn in the Midwest were firm at river locations on Thursday but interior bids were mixed, with a weak tone in the western Corn Belt.
Technical support in the December contract was pegged at $2.37 per bushel, with resistance at $2.46-1/2.
Oat futures closed 3/4 to 2 cents per bushel lower, influenced by declines in corn and seasonal pressure from the ongoing US oat harvest. September was down 3/4 at $1.57-1/4 per bushel.
Oats volume was estimated at 980 futures and 70 options.
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