US corn futures rise

20 Aug, 2008

US corn futures closed 4 percent higher on Monday amid concerns about a turn to dry weather in the US Midwest, traders said. Several months rose the daily limit of 30 cents before backing down from session highs. CBOT corn closed 17-1/2 to 23-1/4 cents per bushel higher, with September up 23-1/4 at $5.53 per bushel.
Funds bought 8,000 lots. Corn volume was light at an estimated 158,483 futures and 108,072 options. Exporters sell 155,465 tonnes of US corn to Mexico. The US Midwest Corn Belt is enduring its driest spell since June, but nothing harsh enough to hurt corn and soya crops. US Midwest corn, soya crop tour kicked off Monday. Ohio corn and soy immature, dryness a worry Pro Farmer crop tour.
Corn yields seen above average in S.Dakota - Pro Farmer crop tour. After the close, USDA said 67 percent of the US corn crop was rated good to excellent, unchanged from the previous week and in line with trade expectations. USDA said 49 percent of the US corn crop was in the dough stage, behind the five-year average of 68 percent. USDA said 14 percent was in the dent stage, behind the five-year average of 30 percent.
USDA said 36.7 million bushels of corn inspected for export last week, slightly above estimates for 32.0 million to 36.0 million. Funds slash long holdings in CBOT corn CFTC. US cash corn lower at river terminals. Oat futures closed 2-1/2 to 2-3/4 cents per bushel higher, with September up 2-1/2 at $3.76 per bushel. Oats volume was estimated at 687 futures.

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