US MIDDAY: corn higher on short cover positions

23 Sep, 2005

Chicago Board of Trade corn futures bounced early on Thursday, following the strength in wheat and soybeans, traders said.
The market was due for a rebound, trapped in recent trading ranges amid outlooks for supplies to grow as harvest progresses. The nine-day relative strength index for December closed Wednesday at 26, below the 30 viewed as an oversold market.
December corn was up 2-3/4 cents at $2.09-1/4 per bushel, with the deferreds up 1 to 2-1/2 cents by 11:55 am CDT (1655 GMT). Commodity funds were covering short positions, buying about 4,000 lots by the midsession. ABN Amro was the featured buyer with 1,500 December, traders said.

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