Corn futures at the Chicago Board of Trade closed lower on Wednesday on long-liquidation ahead of Friday's USDA March planting intentions report, traders said. Bear spreading weighed on the nearby contracts and traders said there also was some soy/corn spreading.
CBOT corn closed unchanged to 4 cents per bushel lower, with May down 4 at $3.88-1/2 per bushel. New-crop December was down 3/4 at $4.00-3/4 per bushel. Traders said the corn market, which is still flirting with 10-year highs, was bracing for a big corn acreage number in the USDA plantings report to be released early Friday morning.
An average of analysts' estimates pegged 2007 US corn acres at 87.987 million, above last year's 78.327 million, and US corn stocks on March 1 at 5.994 billion bushels, below March 1 a year ago of 6.987 billion.
Corn futures traders shrugged off early bullish implications stemming from surging crude oil markets which often give corn a boost because of its tight relationship with ethanol and the energy sector.
Export activity overnight included news South Korea bought 110,000 tonnes of US corn. DTN Meteorlogix weather early Wednesday said rains in the US Midwest were recharging soil moisture reserves, boosting prospects for the soon-to-be-seeded crops.
There are some mounting concerns about the wet weather. If it doesn't dry down in the Midwest soon, corn seedings may be delayed which could trim production prospects for the 2007 US corn crop. Oat futures closed 1-1/2 cents per bushel lower to 2-1/2 higher, with May down 1-1/4 at $2.88-1/4 per bushel.