Chicago Board of Trade corn futures closed higher on Friday supported by a weaker dollar, higher crude oil and spillover influence from a soyabean rally. Corn was down 4 percent for the week due to a technical reversal and selling early in the week.
Traders said the market was undergoing a short-covering bounce following the profit-taking and technical reversal early in the week that knocked corn from a four-month high. Positioning and volatile dealings were expected to continue leading up to the release on Friday, March 30, of the US Department of Agriculture's (USDA) plantings and quarterly stocks reports. A Farm Futures magazine farmer survey released on Friday pegged 2012 US corn acreage at 95.1 million, the most since 1944 and above last year's area of 91.9 million.
The dollar fell to a three-week low versus the euro and the Swiss franc on Friday. Crop-friendly showers and mild temperatures moved through the US winter wheat and corn growing areas this week providing valuable soil moisture for the growing wheat and ahead of spring planting of corn and soyabeans. Key support for May at its 50-day moving average of $6.42-3/4, then at its 100-day ma of $6.38. Major chart resistance at the 200-day ma of $6.66-3/4. The nine-day RSI was at 45.
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