CBOT Corn Review: Futures End Higher After Earlier Selling

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CHICAGO (Dow Jones)--Chicago Board of Trade corn futures ended higher Tuesday, recovering from earlier losses on late short-covering down the stretch.

Nearby CBOT May corn, which is also the most-active contract, ended up 4 1/4 cents, or 1.22%, at $3.52 1/2 per bushel, December corn ended up 3 1/2 cents, or 0.92%, at $3.84 1/4.

Corn managed to hold up fairly well in the face of bearish fundamentals, managing to bounce after selling pressure was exhausted.

Late weakness in the U.S. dollar and the inability of futures to challenge the lower end of a nine-day trading range, sparked concerns that prices are already relatively low, particularly with a long planting and growing season ahead, said John Kleist, broker/analyst with Allendale Inc.

Futures managed to find value at current levels, after digesting a plethora of bearish influences on the market. Prices had initially drifted lower, with pressure from abundant supplies, tepid export demand, competition for feed wheat and favorable U.S. planting weather.

The DTN Meteorlogix weather forecast calls for favorable spring conditions in the U.S. Midwest. A pattern of near- to above-normal temperatures and near- to below-normal rain during the next 10 days will favor preplanting field work and early corn planting.

The theme was consistent until technical buying and late bargain-hunting surfaced to lift prices into the close.

Otherwise, activity was quiet, with prices continuing in a sideways direction, as many traders stay on the sidelines awaiting fresh directives.

Speculative funds were estimated buyers of 6,000 lots in corn. Fund activity is a measure of investment money flow in the market.

CBOT oat futures ended lower. May oats finished down 2 1/4 cents, or 1.03%, at $2.15 3/4 a bushel.

Ethanol futures ended higher. May ethanol ended up $0.008, or 0.52%, at $1.544 per gallon, and July ethanol finished up $0.007, or 0.45%, at $1.575.

-By Andrew Johnson Jr., Dow Jones Newswires, (312) 347-4604 andrew.johnsonjr@dowjones.com

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