Chicago Board of Trade corn futures closed higher on Friday on worries about wet weather in the US Midwest delaying planting and fund-driven short-covering, traders said. CBOT July corn settled up 4 cents at $3.61-1/4 per bushel.
For the week, the contract fell 6 cents a bushel, or 1.6%, its third consecutive weekly decline. Forecasts called for rain and even some weekend snow that could further delay planting in the Midwest and potentially encourage farmers to switch some acres intended for corn to soyabeans.
Commodity funds hold a massive net short position in CBOT corn futures, leaving the market vulnerable to bouts of short-covering. Archer Daniels Midland Co said it was considering spinning off its ethanol business after slim biofuel margins and Midwestern floods slammed the US grains merchant's profit, which tumbled 41% in the first quarter.
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