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CBOT corn closes flat to weak in consolidation

CHICAGO: Corn futures at the Chicago Board of Trade closed steady to weak Thursday in consolidation trading at the current higher price levels, traders said. Corn closed unchanged to 1/2 cent lower with March unchanged at $2.20-3/4.

Corn tried to hold firm on the gains in soyabeans and on a recent slowdown in farmer selling. But the export arena again became cloudy, which led to hesitant buying interest.

Competition from China has cut into export demand for US corn, traders said.

Traders in Asia told Reuters that South Korean interests recently purchased more than 430,000 tonnes of corn from China, switching from US corn following a sharp increase in CBOT futures prices.

They said China exported an estimated 700,000 to 800,000 tonnes of corn. Shipments of corn from China were about $103 per tonne, roughly $6 lower than comparable prices from the United States.

The US Department of Agriculture projected 1999/2000 Chinese corn exports at 5 million tonnes, up from 3.34 million in 1998/99.

US export values for corn at the Gulf of Mexico were steady to 1 cent lower early Thursday amid recent US farmer selling and sluggish demand, dealers said. FIMAT Futures Inc. sold 200 March, Refco Inc. bought 400 March and 200 July and Cargill Inc. bought 900 March.

Corn futures volume was estimated by the CBOT at 50,000 lots, below the 55,826 lots traded Wednesday.

Corn options volume was estimated at 19,000 lots.-Reuters