CBOT corn ends firm on export demand

Friday, 03 February 2012 01:27

CHICAGO: Corn futures on the Chicago Board of Trade ended firmer Thursday after a choppy session, buoyed by strong weekly US export data, but the market stayed below Wednesday's near-three-week high, traders said.

* USDA reported export sales of US corn in the latest week at 974,900 tonnes, above estimates for 700,000-950,000 tonnes. The total included a 50,000-tonne sale to China for the new marketing year, 2012/13, which traders took as a bullish sign.

* Separately, USDA confirmed sales of 107,340 tonnes of US corn to Japan for 2011/12 delivery.

* A nearly 2 percent drop in CBOT wheat futures weighed on the corn market.

* Grains got mixed signals from a seesawing US dollar, which firmed against the euro on concerns about Europe's debt crisis but eased at times on remarks from Federal Reserve Chairman Ben Bernanke on the US economy.

* Goldman Sachs raised its three- and six-month price forecasts for CBOT corn to $6.90 per bushel, from $6.30 previously, citing tight US inventories and lower South American crop forecasts.

* Goldman left its 12-month corn price forecast unchanged at $5.25, citing an expected rise in US 2012/13 corn plantings to 94.5 million acres, which should replenish supplies.

* A shift to crop-friendly weather has occurred in South America as Argentina, which was plagued by dryness and heat a month ago, is set to receive more rainfall. "Argentina will receive showers and storms for the next two weeks, pretty much the whole country will receive rains," said Andy Karst, meteorologist for World Weather Inc.