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CBOT corn ends lower as US prospects improve

CHICAGO: Corn futures at the Chicago Board of Trade closed slightly lower on Monday, pressured by expectations of rain in the US Midwest this week which should build up soil moisture for spring planting.

There was active moving of March positions to deferred contracts, primarily to May, ahead of March's first notice day on Tuesday, traders said. Traders expect first-day notices of 2.5 million to 5.0 million bushels (500 to 1,000 contracts).

Export and cash activity was light. Buying of the futures to cover recent cash sales to Japan appeared to have been completed last week. In the US, farmer selling was light, minimising hedge pressure in the futures.

Early on Monday, USDA reported 39.34 million bushels of corn had been inspected for export last week, up from 34.431 million the previous week. But the increase in exports was not enough to produce bullish trade reactions, particularly with rain in the forecast for the US Midwest, traders said.

Improved rainfall in the US and South America lessened the threat of dry weather problems this year.

"The weather has turned good both here and in South America," said one CBOT corn trader.

CBOT corn closed down 1-1/4 to up 1/2 cent with on May off 3/4 at $2.20-3/4 per bushel.-Reuters