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CBOT corn closes higher on bullish USDA data

CHICAGO: Corn futures at the Chicago Board of Trade closed higher Wednesday, reaching the highest levels in over two months on bullish US Department of Agriculture stocks and crop numbers, traders said.

Corn closed 3-3/4 to 8-1/2 cents higher with March up 8-1/4 at $2.15-1/2.

A host of USDA reports released Wednesday were given a largely bullish nod by CBOT traders.

"It is a complete change in perception of fundamentals, there wasn't a bearish number that came out today," said Charlie Sernatinger, analyst for E.D. and F. Man International. "The charts look absolutely fantastic."

The USDA, in its final estimate for the 1999 crop, cut US corn production by 100 million bushels from its November report to 9.437 billion bushels, contrary to forecasts for a slight increase to roughly 9.544 billion bushels.

Significantly, the USDA's projection for corn stocks at the end of 1999/2000 was slashed by 280 million bushels to 1.714 billion, a reflection not only of a smaller 1999 crop but of improved usage, traders and analysts said.

The USDA raised projected US corn exports for 1999/2000 by 50 million bushels to 1.975 billion bushels and hiked feed and residual use 100 million bushels to 5.65 billion.

In its latest quarterly stocks report, the USDA listed US corn stocks in all positions as of Dec. 1 at 8.02 billion bushels, down from 8.052 billion a year earlier and under an average trade estimate of 8.214 billion.

Funds bought 18,000 lots. Prudential Securities bought 1,500 March, 300 May and 1,500 July, O'Connor and Co. bought 1,500 March and 1,100 May, E.D. & F. Man International bought 1,600 March, Refco Inc. bought 2,500 March, Cargill Investor Services bought 1,500 March, 600 May and 1,000 July, ABN AMRO bought 3,000 March and 2,000 May.

The CBOT estimated corn futures volume at 165,000 lots, above the 62,247 lots traded Tuesday.

Corn options volume was estimated at 43,000 lots.-Reuters