US corn futures ended mostly higher on Friday on first-of-the-month fund buying and on soaring wheat markets, with Minneapolis Grain Exchange spring wheat surging to another record, traders said. Traders said a drop in outside markets, such as crude oil and the US stock market, may have limited gains but the fund demand for grains and soy continues to give each market solid support.
Chicago Board of Trade corn futures closed 4 cents per bushel higher to 3/4 lower, with March down 3/4 at $5.00-1/2 per bushel. Traders said much of the focus was on the Minneapolis Grain Exchange spring wheat futures market, where a record of $14.03 a bushel was set in Asian trading and equalled in US trading on Friday.
Export news also was supportive for corn futures, with the US Agriculture Department early on Friday saying US exporters sold South Korea 210,000 tonnes of corn for 2007/08 delivery. Also, crop weather in South America was garnering some attention. Scattered showers over the past week were aiding crop development in Argentina, while excessive wet weather in northern Brazil caused concern for the maturing soybean crop, DTN Meteorlogix said on Friday.
The March contract was above all key moving averages and first support was at the 20-day moving average of $4.90 per bushel. The nine-day relative strength index for March was at 61. Traders view an RSI of 70 or more as one indication of an overbought market and 30 or less as an indication of an oversold market.
Oat futures were down 6-1/4 cents per bushel to up 2 cents, with March down 6-1/4 at $3.23 per bushel. Oat traders said early gains were tied to new fund allocations but a drop in gold and crude oil pressured oat futures late in the session.