US corn futures closed lower on Thursday on a firm dollar, lower crude oil and slow export sales of US corn. Profit-taking after this week's run-up to 29-month highs, and selling ahead of expected index fund rebalancing contributed pressure. CBOT March down 17-1/4 cents at $6.02 per bushel.
Funds sold an estimated 14,000 to 15,000 contracts. Commercials bought an estimated 5,000 to 6,000 contracts. Traders said they expected index fund selling of corn to be up to 38,000 contracts beginning on Friday, above previous estimates for 34,000 to 35,000 contracts. Index fund portfolio rebalancing expected to begin on Friday and continue through next Thursday.
USDA said export sales of US corn last week totalled 369,100 tonnes, below estimates for 500,000 to 700,000 tonnes. Rainfall in Argentina this week has helped ease stress on crops, especially over La Pampa and southern Buenos Aires. However, more rain is needed and long-range outlook is drier. Overall satisfactory weather continues in Brazil.
Brazil 2010/11 corn crop estimated at 52.7 million tonnes, up from December - govt agency Conab. US cash corn basis mixed; farmer selling slow but January deliveries continue. River bids steady/weak. CBOT March oats down 11-1/2 cents per bushel at $3.77-3/4.
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