US corn futures rallied nearly 2 percent on Tuesday, following surging soya and soyaoil, traders said. At 10 am CST (1600 GMT), Chicago Board of Trade corn was up 2-1/4 to 10 cents per bushel, with March up 9-1/2 at $5.24-1/4 per bushel.
Soya and soyaoil soared to record highs amid Chinese demand for vegoils and traders said that corn was following as the bull run in commodities continues. Additional support to corn was stemming from news early on Tuesday from USDA that exporters sold 165,000 tonnes of US corn to South Korea, reminding the market that export sales of corn remain strong despite the historically high prices.
USDA on Tuesday said 48.4 million bushels of corn were inspected for export last week, above trade estimates for 37.0 million to 42.0 million bushels. Attention remains on crop weather in Argentina, the No 2 global corn exporter after the United States.
The exchange said it expects a corn harvest this year of 20.5 million tonnes, down from last season's record 22.5 million tonnes due mainly to dry weather during key growing stages.
The March contract remains above all key moving averages, with first support at its 20-day moving average of $5.00 per bushel. The nine-day relative strength index is at 70. Oat futures were up 6-1/2 to 10 cents per bushel, with March up 10 at $3.68 per bushel.
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