US corn futures closed lower on Thursday pressured by a rumour the EPA will in August honour a Texas request to reduce federal mandate on how much ethanol must be blended into gasoline this year. CBOT corn closed 6 to 14 cents per bushel lower, with September down 14 at $5.87-1/2 per bushel. Funds sold 8,000 lots.
Also pressure from good crop weather in the US as the corn crop goes through its key pollination stage of development. End-of-month long-liquidation also weighed on corn prices as did a drop in crude oil markets. US Midwest crop belt to get a blast of heat over the weekend, but conditions should remain favourable for pollinating corn, DTN Meteorlogix said.
USDA said export sales of US corn last week totalled 888,800 tonnes, (old-crop/new-crop) within estimates for 600,000 to 900,000 tonnes. International Grains Council raised its estimate of 2008/09 world maize production to 759 million tonnes, up from 756 million last month but below 785 million in 2007/08.
US cash corn basis flat in the Midwest amid slow country selling on Thursday. September contract between support at 200 day moving average of $5.55-1/2 and resistance at 100 day MA of $6.34-3/4. Nine-day RSI at 33. Oat futures closed 7 to 7-1/2 cents per bushel lower, with September down 7-1/2 at $3.77-1/2 per bushel. Oats pressured by fund liquidation and rolling of positions from the September into the December contract.
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