Corn futures on the Chicago Board of Trade were higher early on Thursday due to lighter-than-expected rainfall at midweek in the US Midwest and forecasts for hot weather by the weekend, traders said. At 9:59 am CDT (1459 GMT), CBOT corn was up 1-1/2 to 6-1/4 cents per bushel with July up 5-1/2 at $3.25-1/2 per bushel.
New-crop December was up 5-1/2 at $3.43-1/2. Pit sources said Rand Financial bought 1,300 December. A strong rally in wheat and signs the corn market was technically oversold after the fall to fresh eight-month lows on Tuesday also led to a technical bounce or rebound in the corn futures market.
The US corn crop is in its early stages of the crucial pollination or reproductive stage of development and hot weather now could trim production prospects. Dryness and heat are increasing stress on crops in the northern and far western portion of the US Midwest and a brief period of heat in the east will be followed by rain and cooler temperatures, DTN Meteorlogix weather said on Thursday. Oat futures were up 2 to 3-1/2 cents per bushel, with September up 2 at $2.671/2 per bushel.