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US corn futures closed lower on Friday as a firm dollar and weak crude oil weighed on prices, traders said. CBOT corn closed 7-1/2 to 11-1/4 cents per bushel lower, with September down 11-1/4 at $5.86-1/2 per bushel. Funds sold 4,000 to 5,000 lots.
Pro Farmer pegs 2008 US corn crop 12.152 billion bushels. Also pressure from profit-taking after strong rally on Thursday. Forecasts for rain in the US over the weekend weigh. However, some of the forecasts indicate small amounts of moisture. Traders said there were forecasts for 1/2 to 1 inch of rain next week over 70 percent of the Midwest.
Some rain forecast for US Midwest next week but the outlook was uncertain amid volatile tropical storm Fay. Showers this week missed some dry areas in the crop belt. Argentina sees smaller 2008/09 wheat, corn area. US cash corn steady; farmer selling slow.
September trading between key support at 200-day moving average of $5.66 and key resistance at 100-day MA of $6.30-1/4. Nine-day RSI at 59. Oat futures closed 11-1/2 to 12-1/4 cents per bushel lower, with September down 11-1/2 at $3.65 per bushel.

Copyright Reuters, 2008

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