Corn futures at the Chicago Board of Trade were firmer by early Tuesday on a short covering bounce, supported by the strength in the neighbouring soybean pit, traders said. CBOT March corn was 1-1/4 cent higher at $1.99 per bushel by 11 am (1700 GMT). The deferreds were 1 to 1-3/4 cent firmer. The CBOT soybean market was 2 to 4 cents per bushel higher, led by March amid strong CIF soybean values at the US Gulf.
The corn market was also underpinned by strong cash values. Fimat Futures was the featured player, buying 1,000 May early in the session.
The corn market remains vulnerable to short-covering bounces as funds hold a record short position in CBOT corn futures. The nine-day relative strength index for March closed on Monday at 38, near the 30 level that chartists view as an oversold market.