Corn futures at the Chicago Board of Trade higher on Friday in a volatile session amid mounting concerns over losses in the mortgage sector. Traders said early fund selling, linked in part to a second day of declines in the US stock market and weakness in some allied commodity markets, weighed on corn futures.
The lower prices, however, provided a buying opportunity for commercials, the traders said. Funds turned buyers later in the session, ending with a net purchase of 2,500 contracts.
CBOT September corn settled 3/4 cent higher at $3.33 per bushel, recovering from a session low of $3.24-3/4 and near the day's high of $3.37. December corn was up 1-3/4 at $3.50-1/2. "There was commercial buying after funds were done selling it," said grains analyst Terry Reilly of Citigroup.