CBOT Corn Review: Slight Gains On Short Covering, Crude Oil

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CHICAGO (Dow Jones)--Chicago Board of Trade corn ended higher Monday in a modest short-covering rise aided by outside markets, traders said.

May corn was up 1 1/4 cents to $3.45 3/4 a bushel, and July corn was up 1 1/2 cents to $3.57 1/2.

The market was higher throughout the session despite weakness in soybeans and wheat. Surging crude oil and a weaker dollar were supportive.

Traders said that last week's Commodity Futures Trading Commission Commitments of Traders reports showed a large net short position for speculators, which left the market primed for some short covering.

The small gains do not change the market's trend, traders said.

"It held last week's low; that's the best it could do," a trader said.

Another trader said, "We're still getting lower lows and lower highs."

Many, but not all, traders are viewing weather forecasts as bearish. Warmer weather is expected to persist through much of the 10-day period, which is good for farmers hoping soils will be dry enough for them to complete fieldwork and plant the crop.

But there is also rain forecast for the middle of this week, along with another system beyond that, forecasters said.

Although there is a U.S. Department of Agriculture supply and demand report to be released Friday, traders are expecting few surprises and little impact. Fundamentally, the market's bearish outlook was set by last week's quarterly grain stocks report, which showed greater supplies than expected. It also showed planted acreage this year climbing.

Analysts say that as long as planting weather does not become a problem, farmers are likely to make another large crop this year.

Funds bought an estimated 3,000 contracts Monday.

CBOT oats futures ended lower Monday. May oats dipped 2 1/2 cents to $2.08 a bushel and July oats closed down 2 1/2 cents to $2.17.

Ethanol futures were lower. April ethanol closed down $0.007 to $1.515 a gallon and May ethanol settled down $0.011 to $1.549.


-By Ian Berry, Dow Jones Newswires; 312-341-5778; ian.berry@dowjones.com



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