US corn futures on the Chicago Board of Trade closed lower on Friday, retreating from early advances on weak cash markets and prospects for planting progress, traders said. CBOT July corn closed 8 cents lower at $5.91 per bushel, with new-crop December down 5-3/4 at $6.16-3/4.
Funds were net sellers of 6,000 contracts, traders said. Bearish moves in options pressured futures, with firms selling roughly 3,000 July $5.70 and $5.80 calls. CIF values for corn crumbled at the US Gulf on plentiful supplies and rising ocean freight rates, which have slowed export demand.
Optimism about corn plantings and emergence added some pressure, especially after a few dry days in the western and northern Midwest. Trade expecting USDA on Monday to show corn planting progress near 75 percent. Forecasts called for an open weekend for planting, especially in the western Midwest. Warm weather also likely to boost emergence. But rain was forecast for middle to late next week. Given the economics of corn versus soybeans, traders expecting few intended-corn acres being switched to soybeans, despite corn planting delays. Corn prices are still historically high given world-wide demand for grains, trading just below recent contract highs. The top in December corn is $6.55-1/2. US Midwest basis bids for corn steady with sales quiet, dealers said.