Chicago Board of Trade corn futures rose on Monday at its highest closing price since July on support from investment fund buying tied to expectations for a reduction in acres next month by the US Department of Agriculture, traders said.
USDA'S Farm Service Agency early on Monday increased so-called "prevented plantings" corn acres for ground that farmers were unable to plant during the spring. The report was an indication that USDA could reduce harvested area in the agency's final report due in January for the 2014/15 season, which could result a reduced supply outlook, the traders said.
However, the highest corn futures in five months triggered additional sales from farmers who also were heavy sellers last week. The farmer sales spike capped gains in futures, with CBOT March corn finishing nearly 4 cents off its session highs of $4.12-1/2 per bushel. USDA said put export inspections of corn at 546,515 tonnes for the week ending December 11, slightly higher than the previous week but below analyst expectations. US Commodity Futures Trading Commission data released on Friday showed speculative investors, including hedge funds, with a net long in corn futures of 171,690 contracts, the largest bullish stake since May.
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