Corn futures on the Chicago Board of Trade climbed more than 2 percent Tuesday, following a broad rally in commodities as the US dollar slumped and crude oil prices soared 10 percent, traders said. NYMEX crude oil closed above $70 a barrel on signs that Opec members were cutting production.
Grains also drew support as US stock markets staged an Election Day rally, with the Dow Jones industrial average ending up 305 points. But corn settled below its session highs, with scattered commercial selling noted. CBOT December corn closed up 10 cents, 2.48 percent, at $4.13 per bushel; March up 10 cents at $4.30-3/4.
Volume was moderate estimated at 197,558 futures and 52,891 options. Commodity funds were net buyers of 7,000 corn contracts, traders said. Informa Economics put the 2008 US corn crop at 12.028 billion bushels, down from its October estimate of 12.219 billion. USDA estimates 12.033 billion.
Brokerage FC Stone forecast the US 2008 corn crop at 11.990 billion bushels, down from its October estimate of 12.026 billion; yield seen at 153.4 bushels per acre. Bankrupt ethanol producer VeraSun Energy Corp said it would delay the start of a nearly completed Janesville, Minnesota, refinery due to lack of financing. Favourable US Midwest harvest weather to end Wednesday when rain arrives, a forecaster said.