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CBOT corn closes higher on exports, recovery

CHICAGO: Corn futures at the Chicago Board of Trade closed higher on Wednesday, boosted by export business and a technical bounce after Tuesday's slide, traders said.

But the gains were limited by easing concerns over crop weather conditions in the US Midwest growing region, they said.

Corn closed 3/4 to 2 cents higher with May up 2 at $2.27. The market gained support during Wednesday's session on short covering following Tuesday's slump to three-week lows on forecasts for more rain in the Midwest, and US corn sales to Taiwan and Japan.

The US Agriculture Department said Wednesday private exporters had reported the sale of 104,000 tonnes of U.S corn to Taiwan for delivery in the 1999/2000 marketing year, which ends Aug 31, and 101,600 tonnes corn to Japan.

Gradually improving crop weather in the Midwest after an unseasonably warm and dry winter depleted soil moisture in some areas has been hanging over the market. Weather Services Corp. meteorologist Joel Burgio said on Wednesday that generally light rainfall was expected off and on this week with the possibility for heavier rainfall next week in the US Midwest.

During the past 24 hours, light precipitation of up to 0.10 inch fell in the eastern portion of the Midwest and it was generally dry in the west, he said.

Traders said players were waiting for direction from the US Agriculture Department's quarterly US grain stocks and prospective plantings reports due out release Friday morning.

Chart watchers cited support in the May contract at $2.22-1/2 and resistance at $2.30.

Funds sold 3,500 contracts, Refco Inc. sold 1,000 May and bought 1,800 May, Salomon Smith Barney sold 1,000 May, Tenco Inc. bought 800 May and sold 600 May, FIMAT Futures bought 500 May and sold 1,200 May and O'Connor and Co. sold 1,000 May.

Corn futures volume was estimated by the CBOT at 88,000 lots, below the 97,360 lots traded Tuesday.

Corn options volume was estimated at 27,000 lots. -Reuters