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CBOT corn closes higher on exports, soy rally

CHICAGO: Chicago Board of Trade corn futures closed higher Thursday on a late rally in soybeans plus better-than-expected US weekly export sales coupled with fresh business.

Corn closed 1/2 to 1-1/2 cents higher with March up 1-1/2 at $2.16-1/4. May closed 1 cent higher at $2.24.

"Corn followed beans up at the close," said Shawn McCambridge, analyst for Prudential Securities.

Soybean futures gained late on short covering amid some talk of potential drier weather in parts of the US Midwest starting around mid-March.

The market found reason to hold firm on the latest government release of US corn export sales.

The US Department of Agriculture, in its weekly report Thursday, said net export sales of US corn during the week ended Feb. 24 totalled 1,131,000 tonnes, above a range of estimates for 600,000 to 850,000 tonnes.

The net export sales tally was 27 percent above the previous week and 40 percent above the four-week average, according to the USDA. Japan was the key buyer with 618,100 tonnes purchased.

The market was also supported by news that Taiwan would tender on Friday for 56,000 to 58,000 tonnes of US corn.

The USDA said private exporters had reported sales of 152,400 tonnes of corn to Japan and 105,000 tonnes to South Korea for delivery in the 1999/2000 marketing year that began Sept. 1. Other export news included a purchase by the Philippine feed millers of 20,000 tonnes of corn from China.

Gains were limited by the recent improved crop weather in the US Midwest.

Weather Services Corp. early Thursday said soil moisture in the Midwest is mostly favourable at this time. WSC also cited a chance of rain Friday and again Sunday in several key corn areas of the US Midwest.

The market continues to deal with heavy delivery notices surfacing this week on the March contract. Tuesday was first notice day, and early Thursday another large 2,628 lots of corn were posted for delivery against the March.

Funds sold 1,000 lots. FIMAT Futures sold 1,000 May, Cargill Inc. sold 200 each of May and July and E.D. and F. Man International bought 200 May and bought 100 March.

Corn futures volume was estimated by the CBOT at 58,000 lots, below the 82,138 lots traded Wednesday.

Corn options volume was estimated at 12,000 lots. -Reuters