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CBOT corn ends up on exports, near 4-month high

CHICAGO: Corn futures at the Chicago Board of Trade closed higher on Friday, reaching the highest levels in nearly four months on slower US farmer selling and strong government export readings, traders said.

Corn closed 1/2 to 2 cents higher with March up 2 at $2.22-3/4.

The US Department of Agriculture's weekly export sales report released early Friday surpassed trade expectations for corn, suggesting that foreign demand may be improving as the new year progresses.

Net US corn sales during the week ended Jan. 13 were 1.126 million tonnes, four times the previous week and 76 percent above the four-week average, the USDA said. Expectations were for 300,000 to 900,000 tonnes.

The USDA listed Japan, at 366,700 tonnes, as the largest buyer. Actual corn exports for the same period totalled 998,900 tonnes, 13 percent over the four-week average.

In US cash markets, farmer corn and soybean selling tapered off late this week, after a brief pickup late last week and early this week, merchants said.

Cash corn bids around the US Midwest were mostly steady to up 2 cents early Friday. The slower farmer sales have reduced hedging pressure on futures.

Some farmers were holding on to corn in hopes that March futures would rise to $2.25, an Indiana merchandiser said in an earlier Reuters report.

Funds bought 3,500 lots. Cargill Inc. sold 1,100 March, E.D. & F. Man International bought 1,200 March, Prudential Securities bought 1,500 May and Salomon Smith Barney bought 600 March. Refco Inc. sold 800 March and Cargill Inc. sold 1,100 March.

Corn futures volume was estimated by the CBOT at 55,000 lots, above the 50,155 lots traded Thursday.

Corn options volume was estimated at 24,000 lots.-Reuters