US corn futures end up

02 May, 2009

US corn futures closed higher on Thursday amid wet weather in the US Midwest that is slowing corn plantings and on a strong rally in soyabeans. CBOT May was up 3-1/4 cents a $3.96-1/4 per bushel. Funds bought 8,000 lots. Month-end positioning noted. Increase in farmer selling noted early in day. Midday forecasts showed a little drier weather in US Midwest.
New-crop corn/soya spreads now favouring soya, leading to potential for more soya acres and less corn. Big export number for corn in USDA's weekly export sales report released early on Thursday also supportive. Firm crude oil, weak dollar and higher stock markets lifting corn futures in addition to support from soaring soyabeans. Wet weather in the US Midwest slowing corn plantings.
USDA said 1,341,300 tonnes of corn (old-crop/new-crop) sold for export last week, above estimates for 800,000 to 1.2 million tonnes. South Korea's Nonghyup buys 220,000 tonnes of US corn. Deliveries on May 431. Estimates for 500 to 1,500. US cash corn mostly steady in the Midwest and farmer selling was slow. CBOT May oats was up 1 cent at $1.94 per bushel.

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