Chicago Board of Trade corn futures were firmed on Friday on technical buying and firm US cash values, after a midmorning break on news of bird flu in Texas, brokers said.
CBOT corn futures were last up 1-1/4 cents per bushel to down 1-1/2 cents, with March up 3/4 cent at $2.85-1/2, after setting a high of $2.88, and May up 1/2 cent at $2.91-3/4.
Technical support for CBOT May corn held at Thursday's low of $2.85 per bushel, while resistance at Thursday's high of $2.91-1/2 was broken, traders said.
Rolling of front-month CBOT March corn positions was noted ahead of the February 27 first notice day for deliveries, they said. CBOT corn registrations late Wednesday totalled 44 contracts, unchanged from the previous day. Registration of a contract does not mandate delivery.
Liquidation of March corn options was also noted. Friday is their last trading day.
Corn futures continued to find support from tight US cash stocks of corn and overall brisk demand. Cash corn basis values early Friday in the US Midwest were steady, dealers said.
Overnight US corn export business was quiet, but the US Department of Agriculture's export sales for last week put net corn export sales at 952,300 tonnes, versus estimates for 900,000 to 1.1 million tonnes.
CBOT traders continued to hope for gains in sales to Asia if China pulls back on exports as expected this year, but they noted news that rival corn exporter China had issued the first batch of corn export quotas for 2004, totalling 1.4 million tonnes.
China exported a record large 16.4 million tonnes last year.
Friday's late gains followed a break on news of a mild strain of bird flu in Texas, CBOT traders said.
The virus in Texas, H5N2, is different from the strain sweeping Asia, but traders were concerned that poultry exports and feed demand could be hit.
Russia banned Texas poultry imports on Friday.
CBOT corn futures' gains were also limited by a reminder of a potential record-large US corn crop this year.
The US Department of Agriculture in its annual outlook conference Friday pegged this year's corn seedings at 80.5 million acres and forecast the crop at a record 10.41 billion bushels, above last year's record crop of 10.114 billion.
However, US corn stocks for 2004/05 were projected to fall 80 million bushels to 821 million bushels.
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