Chicago Board of Trade corn futures were higher at close of pit trade on Thursday due to forecasts the US Corn Belt will become hotter and drier and to strong cash corn markets. Drier and hotter weather is expected by the weekend in the US Midwest corn and soyabean growing region, which may further stress crops, an agricultural meteorologist said on Thursday.
"A third of the Corn Belt will be dry by the end of the 10-day period, but the 11- to 15-day period suggests some relief in the eastern belt," said Joel Widenor, meteorologist for Commodity Weather Group. Widenor said Corn Belt temperatures would rise into the upper 80s F to mid-90s F early next week but it will be cooler the rest of that week. "There are limited prospects for rain in Ohio, Indiana, Michigan and the south-eastern half of Illinois next week," Widenor said. Roughly half of the Midwest will receive from 0.50 inch to 2.00 inches of rain over the next five days, Widenor said.
Heavy rains have improved growing conditions in China's top corn producing provinces, which could limit the damage inflicted by a prolonged period of dryness with forecasts of more crop-friendly weather in the coming days.
USDA's weekly export sales report showed export sales of US corn last week at a net 169,800 tonnes, below estimates for 400,000 to 600,000 tonnes. Old-crop sales were a marketing year low and total sales were the lowest in 11-weeks.
Spot basis bids for corn and wheat were steady to higher around the US Midwest on Thursday as old-crop corn sales picked up and the wheat harvest got underway, dealers said. The July/December spread was at 84-3/4 cents, premium July.