Corn closes firm, rally in soya supports

Chicago Board of Trade corn futures closed about a penny higher across the board on Tuesday, turning firm late as soybeans rallied, traders said.
There was little fresh news to lend direction as the market spent most of the session weaker on a setback from the rally on Monday when funds covered short positions.
December corn closed 1-1/4 cent higher at $1.95-1/2 per bushel and March was up 1 at $2.08-3/4.
January soybeans closed 13-1/2 cents higher at $5.97-1/2, supported by technical buying by commodity funds.
But volume was on the lighter side in corn. An estimated 79,984 futures and 16,796 options traded, compared to 142,349 futures on Monday.
Monday's rally shook some corn loose from US farmers' hands. But movement tapered off by Tuesday, dealers said.
Midwest cash basis bids for corn firmed on Tuesday afternoon as country dealers tried to encourage farmer sales.
Reminders of a near record 2005 US corn harvest weighed on prices. Trade sources said Informa Economics estimated this year's US corn crop at 11.08 billion bushels, above USDA's November estimate of 11.03 billion.
There was another round of heavy December deliveries, 1,284 contracts on Tuesday. A customer of the LBS Division of Man issued 610 lots and an ABN Amro customer was the biggest stopper at 412 lots.
CBOT corn registrations dropped to 2,997 lots from the previous 3,250.
CBOT oat futures closed mixed, up 3 cents to down 1 cent.
December oats were up 3 cents at $2.20-1/2 per bushel after hitting a contract high of $2.20-3/4 as traders exited their short positions before expiration on Wednesday. March was steady at $2.05.
Volume was light at an estimated 813 futures and 69 options. That compared to 1,626 futures traded on Monday.