CBOT corn ends lower on disappointing export sales

Corn futures at the Chicago Board of Trade ended lower on Thursday in reaction to another week of disappointing export sales and a mild setback from the firm close on Wednesday, traders said.
Corn futures ended 1 cent to 2-1/4 cents per bushel weaker, with old-crop July down 1-1/4 at $2.73-1/4 and new-crop December 1-3/4 lower at $2.82-1/2.
Commodity funds sold 5,000 to 6,000 futures. Rand Financial and Refco each sold 2,500 to 3,000 December, pit traders said. But commercials were net buyers.
Volume was large, estimated at 86,830 futures and 34,549 options.
The US Department of Agriculture said on Thursday that last week's export sales of corn totalled 348,600 tonnes, below estimates for 450,000 to 600,000 tonnes.
There was some weather talk before the open due to forecasts for hot and dry weather in July - pollination time, the key yield-determining period.
But current weather remains favourable for growth and development, which could lead to a record 2004 US corn crop.
"The northern belt is looking for some warmer weather, and corn is tasseling as far north as central Illinois," said one CBOT floor broker.
Rolling of July positions continued before first notice day on June 30. But spread activity was lighter, compared with earlier in the week.
Funds were bear spreaders, rolling their July longs, while commercials were bull spreading.
Corn registrations with the CBOT late Wednesday were unchanged at 26 lots.
Cash basis markets inched higher at several Midwest locations on Thursday as dealers tried to stir farmer sales of corn, dealers said.
Oat futures turned lower late in the session amid news that the European Union granted export licenses on 21,700 tonnes of Scandinavian oats, with a refund of 22.81 euros per ton.
July oats closed 1-3/4 cent lower at $1.45-1/4. Volume was average, estimated at 1,164 futures and 144 options.
The market was underpinned early by strength in soybeans and a strong Canadian cash market for oats, traders said. Farmers have been reluctant sellers of old-crop oats, worried about the size of their 2004 crop, which was off to a slow start due to cool weather.