Chicago Board of Trade corn futures closed higher on Wednesday, supported by short covering and declines in the dollar that made US supplies more attractive to overseas buyers, traders said. Falling crude oil prices, which hurt demand for corn-based ethanol, was overhanging the market.
Corn for March delivery rose 3-1/4 cents to $3.98 a bushel at the Chicago Board of Trade. Funds bought 2,000 contracts, traders said. Trading volume was thin. US grain exchanges will be closed on Thursday for the Christmas holiday. More dry weather, with just a few light showers forecast for Argentina during the next week, which could slow development of the corn crop, according to a DTN Meteorlogix forecast. Cash basis was steady around the Midwest on Wednesday amid slow farmer selling. Cash bids have been steady to firm despite a futures market rally due to slow movement in the country. The US dollar fell against most major currencies on Wednesday due to weak economic data.