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CBOT corn ends mixed, soybean gains offer support

CHICAGO: Corn futures at the Chicago Board of Trade closed mixed on Tuesday with the market underpinned late by gains in soybeans, traders said.

Corn closed 3/4 cent higher to 1/2 lower, with March unchanged at $2.22-1/4.

Traders said the firmCBOT corn ends mixed, soybean gains tone in soybeans kept away aggressive selling in the corn pit. But gains in corn were checked by an improved crop outlook in South America and concerns over the U.S. export outlook, traders said. Rains over the past two weeks brought some relief from dry conditions in South America's corn and soybean belt. But meteorologists said the rain probably will not avert reduced yields in Argentina, the world's second-leading corn exporter behind the United States.

While South American production may be lower, the U.S. corn market still faces an export environment in which world grain buyers hold the upper hand over sellers.

Earlier Tuesday, the Korea Corn Processing Industry Association passed on tenders to buy 105,000 tonnes of U.S., Argentine or Chinese corn, citing high prices, traders said.

China has been an aggressive seller of corn recently into Asian markets, primarily South Korea. Last week, the U.S. Department of Agriculture said it revised its forecast for 1999/2000 Chinese corn exports higher by 60 percent.

In other export news, Taiwan's Members Feed Industry Group bought 56,000 tonnes of U.S. corn at a tender on Tuesday.

The CBOT corn market otherwise had little fresh fundamental guidance, and traders looked for prices to hold within recent ranges. Traders placed support for March corn around $2.19 to $2.20 and resistance around $2.24 to $2.24-1/2.

The latest Commitments of Traders reports from the Commodity Futures Trading Commission indicated that speculative commodity funds recently reduced slightly a large net long position in the CBOT corn market, traders said.

The CFTC said that as of Feb. 8, noncommercial interests, which are primarily funds, held 85,113 long corn futures and options contracts and 18,345 shorts, for a net long of 66,768. contracts. As of Feb. 1, the net noncommercial long was 70,437.

Near the close, FIMAT sold 500 March. Cargill bought 400 March, TENCO Commercial Grain bought 300 March and Iowa Grain sold 300 March. In options, Term Commodities bought 1,000 July $2.50 calls, sold 1,000 May $2.20 puts and sold 1,000 May $2.40 calls.

Corn futures volume was estimated by the CBOT at 50,000 lots, below the 50,320 lots traded Monday. Corn options volume was estimated at 18,000 lots.-Reuters