US corn futures closed higher on Tuesday, following surging soya and soyaoil, traders said. Chicago Board of Trade corn closed up 3-3/4 to 7-1/2 cents per bushel, with March up 5-1/2 at $5.20-1/4 per bushel. Commodity funds bought 5,000 lots and 72 percent of the electronic volume was made in spreads as firms were rolling their March positions, traders said.
Estimated volume was heavy at 293,958 futures and 84,810 options. Soya and soyaoil soared to record highs amid Chinese demand for vegoils and traders said corn was following as the bull run in commodities continues.
Traders and analysts said corn was tracking the gains in soya in an attempt to buy acres from soya for the 2008 US crop year. Soaring outside markets, such as gold and crude oil, also were contributing support to the corn futures market, the traders said. New York crude oil surged to a record high $100.10 per barrel on Tuesday and New York gold soared about $25 per ounce.
Additional support to corn was stemming from news early on Tuesday that exporters sold 165,000 tonnes of US corn to South Korea, reminding the market that export sales of corn remain strong despite the historically high prices.
The US Agriculture Department said on Tuesday 48.4 million bushels of corn were inspected for export last week, above trade estimates for 37 million to 42 million bushels. Attention remains on crop weather in Argentina, the No 2 global corn exporter after the United States.
Argentina's 2007/08 corn harvest inched forward last week and the effects of adverse weather on yields was already being seen, the Buenos Aires Grains Exchange said on Monday. The exchange said it expected a corn harvest this year of 20.5 million tonnes, down from last season's record 22.5 million tonnes due mainly to dry weather during key growing stages.