Corn futures at the Chicago Board of Trade closed lower on Monday, pressured by this year's harvest of a record-large US crop and disappointing weekly export inspections, CBOT brokers said.
CBOT corn futures through July 2005 settled 2 to 2-3/4 cents per bushel lower, with December down 2-3/4 at $2.04. Funds sold about 1,000 contracts; commercials were on both sides of the market.
But volume was light amid a lack of fresh news, floor traders said. The CBOT estimated that 52,202 futures and 20,737 options traded. After the close, the US Department of Agriculture reported the US corn crop was 44 percent harvested as of Sunday, up from 33 percent a week ago.
That was below trade expectations for 50 percent complete. Despite the slower than expected harvest pace, harvest reports stemming from the northern states were better than expected, especially in Minnesota.
There were reports of Minnesota corn yields running about 180 to 200 bushels per acre, above the US projected average of 158.4 bushels, traders said. There were concerns in the season that Minnesota, typically the fourth largest corn producing state, would see reduced yields due to a cool summer.
The USDA on Monday said 22.306 million bushels of corn were inspected for export last week, below trade estimates for 31.0 million to 36.0 million. The market closed lower even though the USDA announced on Monday that Japan bought 296,944 tonnes of US corn for 2004/05 delivery late last week.
The sale was priced into the market on Friday, traders said. Overnight export business featured an Israeli private buyer issuing a tender to purchase 32,000 tonnes to 40,000 tonnes of US corn, European traders said on Monday.
In other global news, good rains across South America were seen improving crop prospects there. Midwest cash basis bids were mostly steady on Monday, but Nebraska bids dropped 4 cents to 8 cents per bushel after an active harvest weekend, dealers said.
CIF corn at the US Gulf was steady on Monday. Large speculators increased their net-short position in CBOT corn futures in the week ended on Tuesday, October 12, the Commodity Futures Trading Commission said on Friday.
Funds were long 97,247, up 4,282 contracts, and short 143,968, up 9,411 from the prior week. For futures and options combined, funds expanded their heavy net-short stance to stand long 76,308 lots, up 5,362 and short 141,424 lots, up 8,393 from the previous week.
CBOT oat futures closed 1-1/4 to 1-3/4 cents per bushel lower, pressured by the weakness in corn and farmer hedge sales as the Canadian oat harvest picked-up recently.
December settled 1-3/4 cents lower at $1.43-1/4 per bushel. Volume was thin estimated at 511 futures and 63 options.