CBOT corn nears four-year high on firm cash market, crop prospects

CHICAGO: Chicago Board of Trade (CBOT) corn futures climbed nearly 3% on Thursday, with the benchmark July contract nearing a four-year high on firm cash markets and uncertainty about the yield potential of the delayed US crop, traders said.

* CBOT July corn settled up 12 cents at $4.42 per bushel after reaching $4.42-3/4, the highest for a most-active contract since July 2015.

* New-crop December ended up 7-1/4 cents at $4.55-3/4 after hitting a contract high at $4.56-3/4.

* Technical buying accelerated as new-crop December pushed above its previous contract high of $4.54.

* Firming corn basis levels at interior Midwest corn processing sites this month reflected end-user demand and scarce farmer selling.

* The Commodity Weather Group in a daily note predicted above-normal precipitation over the next 10 days in southern and eastern portions of the US Corn Belt, further delaying any late planting.

* The US Department of Agriculture reported export sales of US corn in the week to June 6 at 262,600 tonnes (old and new crop years combined), below the lowest in a range of trade expectations.

* However, through its daily reporting system, the USDA said private exporters sold 175,000 tonnes of US corn to Mexico for delivery in the 2019/20 marketing year that begins Sept. 1, 2019.