US corn futures on the Chicago Board of Trade closed above $4 a bushel on Friday - the first time in seven weeks as worries about South American crop weather led to a technical rally, traders said. Higher crude oil added support. March corn ended 14-1/4 cents higher at $4.12-1/4 a bushel, above its 10-, 20- and 50-day moving averages. March climbed to $4.14-1/2 - the highest price for the spot contract since early-November.
But it was a light volume rally after the Christmas holiday. Commodity funds bought an estimated 4,000 corn contracts. Crude oil was up more than $2, breaking through $37 per barrel after the United Arab Emirates joined Saudi Arabia in deepening oil supply curbs to comply with Opec's biggest-ever output cut last week.
Grains and oilseeds tend to track crude oil as they are the main feedstocks to produce US biofuels. Next chance of some decent showers for central Argentina, third largest soy producer, will be the middle of next week. Maybe 0.25 to 1.0 inch, locally heavier - DTN Meteorlogix forecaster.
Those rains expected to move into southern Brazil - soy states of Rio Grande do Sul and Parana - next Friday/Saturday. But western Rio Grande do Sul, which is the driest, not likely to see much moisture -DTN Meteorlogix forecaster.
Weekly export sales were within expectations. USDA said corn export sales were 551,400 tonnes (all for 2008/09). Analysts estimated export sales between 300,000 and 650,000 tonnes. Weekly trade data from the Commodity Futures Trading Commission issued on Monday, delayed one business day due to the Christmas holiday CBOT oat futures ended 12-1/4 cents a bushel higher across the board, following the other grains higher. March oats closed at $2.31.
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