The Chicago Board of Trade corn market was firm mid-morning Wednesday but fading after an early bounce tied to worries about dryness in the US Midwest crop belt, traders said.
"Corn is fading very quickly. Weather is very favourable at the current time with the current forecast ... corn continues to trade in range since April," one CBOT trader said.
The western Corn Belt is getting plenty of moisture, which is beneficial to young corn plants. The east is dry but light, scattered showers were expected to move into the belt later this week, a DTN Meteorlogix forecaster said.
In some areas of the central Corn Belt, eastern Illinois for example, the top soil moisture is 66 percent short to very short, the forecaster added.
July corn was down 3/4 cent at $3.68-3/4 per bushel by 10:35 am CDT (1535 GMT), after climbing 5 cents early. The back months were down 3/4 cent to up 1 cent. Fimat bought 800 Dec, traders said. Firm US cash markets remain supportive, traders said. They continue to strengthen as farmers are not moving grain as they complete field work and wait for higher prices.
Talk continues that China is likely to suspend its corn export subsidy program, which was a key factor keeping Chinese corn prices competitive with US prices, traders said. South Korea bought 110,000 tonnes of optional-origin, non-genetic modified corn from Bunge, traders said. CBOT oat futures were firm, up 1-3/4 to 3-1/2 cents per bushel, following the other CBOT markets higher. July was up 2-3/4 cents at $2.72.
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