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CBOT corn closes lower on weather and exports

CHICAGO: Corn futures at the Chicago Board of Trade closed lower on Thursday on bearish input from the export sector along with a snowstorm heading for the US Midwest that was expected to provide some relief from dry weather.

Corn closed 1/4 to 1-3/4 cents lower, with March down 1-3/4 at $2.21-1/4.

Traders said corn prices had little reason to climb significantly at this time, given large supplies and stiff competition in the export market.

The US Agriculture Department's latest weekly export sales report, released early on Thursday, listed net US corn sales for the week ended Feb. 10 at 559,800 tonnes, 43 percent below the previous week and 45 percent below the four-week average. Expectations ranged from 600,000 to 900,000 tonnes.

Actual exports of 922,700 tonnes for the same period were 1 percent above the four-week average.

US corn exports have suffered recently due to aggressive corn sales by China, primarily into other Asian markets. Earlier this month, the USDA hiked its 1999/2000 export projection for Chinese corn to 8 million tonnes from 5 million.

Earlier Thursday, the Korea Corn Processing Industry Association bought 105,000 tonnes of Mongolian corn from Tradigrain via tenders, traders in Asia said.

The weather picture also was cited as a bearish influence early on Thursday with 4 to 10 inches of snow expected in several key US Midwest corn states late on Thursday through Saturday. The market has been finding some underpinning from hints of possible dry weather this year in the US Midwest.

Refco Inc. sold 500 May, Iowa Grain sold 200 March, Commercial Grain bought 800 March and Prudential Securities bought 300 March and sold 200 May. In spreading, Prudential Securities bought 4,000 July and sold 4,000 March at a price difference of 16-1/2 cents, and Commercial Grain bought 2,500 March and sold 2,500 July at 16-1/2. ADM Investor Services bought 1,700 March and sold 1,700 May at 8-1/2 cents.

Corn futures volume was estimated by the CBOT at 70,000 lots, below the 77,740 lots traded Wednesday.

Corn options volume was estimated at 15,000 lots.-Reuters