Corn futures at the Chicago Board of Trade closed mostly lower on Monday on better planting weather in the US Corn Belt. traders said. CBOT corn closed 6-1/4 cents per bushel lower to 2-1/2 cents higher, with May down 6-1/4 at $3.58 per bushel. July was down 6-1/4 at $3.67-1/2 and new-crop December was down 3 at $3.64-1/2.
Volume was estimated by the exchange at 204,896 corn futures and 36,602 options. Wet and cool weather had slowed crop seeding earlier this spring, but drier and warmer weather last week and forecasts for dry weather this week fed expectations for a sharp boost in corn planting progress.
After the close, the US Department of Agriculture said the US corn crop was 23 percent planted as of Sunday, up from 11 percent the previous week but well behind the five-year average of 42 percent.
Traders had been expecting USDA to show US corn seedings at 30-35 percent. The US Corn Belt will be clear except for an occasional shower over the next week amid warmer temperatures, giving farmers a break from weeks of rains so they can plant their corn crop, a forecaster said Monday.
"This is the break in the pattern that everyone has been waiting for. We're going to see how fast producers can plant this crop," said Mike Palmerino, forecaster with DTN Meteorlogix.
US farmers are expected to plant roughly 90.5 million acres of corn this year, the most in over 60 years, with decade-high corn prices and surging demand from the ethanol industry keeping corn on center stage.
Heavier than expected deliveries on the May contract also are expected to weigh on the market, especially with most of the deliveries issued by a large commercial player, traders said. Monday was first notice day for deliveries on the May. Deliveries of corn on the May contract totalled 1,723 lots on Monday, above estimates for zero to 1,000 lots. Commercial trader ADM posted 1,628 lots, a fact that will add to the bearish impact on the May corn futures contract.
Crop weather in South America hasn't been ideal for harvesting corn but no serious problems have been reported. Argentine farmers made slow progress harvesting corn last week because of wet weather, the Argentine government said on Monday.
US corn exports were quiet over the weekend. Cash basis bids for corn in the Midwest on Monday were mostly steady and farmer selling was slow. Most farmers were focused on planting corn, cash dealers said.
Key support in the July contract is at its 200 day moving average of $3.59 per bushel. The nine-day relative strength index is in neutral territory at 42. Friday's CFTC commitments of traders report for futures and options combined showed that as of last Tuesday large speculators were long 252,111 lots, up 4,474 from the previous week, and short 73,762, up 1,724 lots. Index funds were long 359,509 lots, down 1,350, and short 13,198 lots, down 109 lots from the previous week.
Oat futures closed 4 cents lower to 2-1/4 higher, with May down 4 at $2.61 per bushel. Oats volume was estimated at 988 futures and 40 options.
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