Corn futures on the Chicago Board of Trade closed higher on Wednesday, led by the distant contracts amid the brisk demand for corn and outlooks for shrinking feed grain stocks near the end of next year, traders and analysts said.
Choppy trading was noted and the market ended on a strong note amid light fund buying, a pattern that has been evident for several trading sessions in a row. CBOT corn closed unchanged to 5-3/4 cents per bushel higher, with December up 1-1/2 at $3.62-3/4 per bushel.
Traders said the volume was light on Wednesday with positioning noted ahead of a shortened holiday trading period. Export activity overnight included news South Korea bought up to 110,000 tonnes of optional-origin corn and India likely will ban corn exports soon and may waive an import duty of 15 percent. Early this month India sold 150,000 tonnes of corn, its first corn export in many years.
Corn futures continue to find some support because of only light farmer selling despite the fact corn futures are hovering around decade highs. Cash basis bids for corn in the Midwest were mostly steady amid slow farmer selling and cash dealers said farmers were holding out for higher prices.
Crop weather in the Midwest is becoming a very minimal market factor because the corn harvest is virtually complete. Harvest weather was improving in the eastern Midwest which should allow rapid wrap-up of 2006 corn and soy harvest, according to Meteorlogix weather. Chart-based traders are watching the December contract trade above all key moving averages and the nine-day relative strength index is at 71. Oat futures closed unchanged to 2 cents per bushel lower, with December down 3/4 cent at $2.54-3/4 per bushel.