US corn futures rise

25 Oct, 2008

US corn futures on the Chicago Board of Trade closed higher on Thursday on a short-covering recovery from a fall to near one year lows at mid-week, rain-delayed harvesting and gains in crude oil. CBOT corn closed 4-3/4 to 7-1/4 cents per bushel higher, with December up 5-1/4 at $3.90-1/4 per bushel.
Funds bought 4,000 to 5,000 lots. Volume strong estimated at 203,445 futures and 72,071 options. Bulk of futures trade made in spreads, traders said. Exiting of November $4.20 puts noted before Friday expiration.
Uncertainty about the direction of stock market limited gains in corn. Support from firm cash, slow farmer selling and slow harvesting of US corn crop due to wet weather. USDA said 789,600 tonnes (old-crop) corn sold for export last week, above the range of estimates for 550,000 to 750,000 tonnes.
US corn, soy exports solid; wheat struggles. Wet and cool to cold weather over the next three to five days to delay harvest in western Midwest, and rains moving into eastern areas later on Thursday, especially in Illinois. US cash corn higher in the Midwest and farmer selling slow.
December contract below all key moving averages and nine-day RSI at 34. Oat futures closed 10 cents per bushel lower, with December down 10 at $2.55 per bushel. Volume large estimated at 2,259 futures. Funds noted buyers of December and sellers of December. Commercial hedge selling noted in December futures.

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