US corn futures on the Chicago Board of Trade rallied late Friday after spot September failed to break below support at $3 and spurred a short-covering bounce going into the close, traders said. Corn was pressed early in the session by USDA's upward revision in its 2009 US corn estimate issued on Friday. But USDA also projected increased usage and a reduction in China's crop production of 2.5 million tonnes - both supportive features.
Traders unwound long soy/short corn spreads. Funds hold a large net short in corn but remain long soybeans, which tends to promote corn/soy spreading. September corn closed up 5 cents at $3.14-1/2 per bushel; December up 4-1/2 at $3.19-3/4. Funds were net buyers of 6,000 contracts, traders said.
USDA raised its estimate of the US 2009 corn crop to 12.954 billion bushels, near the average trade estimate of 12.901 billion. USDA raised yield to 161.9 bu/acre, which would be a record high if realised. USDA raised its US 2009/10 corn ending stocks forecast to 1.635 million bushels, but that was below the average trade estimate of 1.769 million.
USDA reported export sales of US corn in the latest week at 4.851 million tonnes (3.8256 million carried over from 2008/09). Trade estimates were for 550,000 to 750,000 tonnes. Argentina scraps corn, wheat tax for small farmers. No deliveries against CBOT September futures.
CBOT oats ended 3/4 cent a bushel higher across the board, supported by the late buying in corn and wheat. September oats ended at $1.96 and December oats at $2.08. USDA monthly crop data for oats was neutral, with 2009/10 ending stocks forecast unchanged at 73 million bushels.