Chicago Board of Trade (CBOT) corn futures rose on Thursday as US Midwest flooding fueled concerns about stalled spring planting, prompting short-covering by commodity funds, traders said. CBOT May corn settled up 4-3/4 cents at $3.76-1/4 per bushel. The 1.3 percent gain was the contract's steepest since Feb. 12.
Commodity funds hold a near-record large net short position in CBOT corn futures, leaving the market vulnerable to bouts of short-covering. Record flooding in the western Corn Belt, including Iowa and Nebraska, two of the top three corn producers, is fueling worries about late planting and reduced acreage.
The US National Oceanic and Atmospheric Administration said on Thursday that flooding will persist in the wider region through May, which would leave little time to plant a timely corn crop. US President Donald Trump warned on Wednesday that the United States may leave tariffs on Chinese goods for a "substantial period" to ensure that Beijing complies with any trade agreement.
The US Department of Agriculture said corn export sales for the week ended March 14 totaled 915,900 tonnes, in line with analysts' estimates that ranged from 600,000 to 1.3 million tonnes.
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