US corn futures closed higher on continued drought stress on the Argentine crop. CBOT corn closed 1/2 to 3 cents per bushel higher, with March up 3 at $3.90-1/2 per bushel. Funds bought 3,000 lots. Expiration of February options had little impact on prices.
Support from news the Buenos Aires Grains Exchange cut its estimate for Argentina's corn crop. Additional support from an upturn in the crude oil market and surging gold. USDA said export sales last week totalled 1,112,600 tonnes (old-crop/new-crop), above estimates for 400,000 to 600,000 tonnes.
Hot and dry weather stressing crops in Argentina and showers over the weekend may not be enough to prevent further deterioration of crops. Good crop weather continues in Brazil. Exporters sell 102,616 tonnes US corn to Japan for 2008/09. US corn supply grows as economy shrinks.
US cash corn steady to firm in the Midwest late on Thursday as grain elevators and processors sought to entice more farmer selling following a decline in futures. Oat futures closed 2 cents per bushel higher, with March up 2 at $2.15 per bushel.
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