CBOT Corn Review: Up On Soybeans, Short-Covering

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CHICAGO (Dow Jones)--Chicago Board of Trade corn ended higher on support from rallying soybeans and short-covering, traders said.

May corn ended up 3 3/4 cents to $3.59 1/4 per bushel, and July corn ended up 3 3/4 cents to $3.69.

Strength in soybeans led the way higher, although both beans and corn ended off the day's highs.

Analysts say that despite a strong start to planting season and favorable weather, it is too soon to push the market much below current levels.

Soybeans led the way higher, ending up more than a dime, although at one point they were up more than 20 cents and had climbed above $10. Chad Henderson, analyst with Prime Ag Consultants, said that "$3.60 May corn almost looks cheap compared to $10 beans."

Demand is generally seen as lackluster, but chatter about Chinese demand for corn or distillers dried grain, an ethanol byproduct used as animal feed, is providing some underlying support, analysts said. The demand for DDGs is already confirmed, while demand for U.S. corn remains speculation, with many analysts saying China imports will be low, if they happen at all.

Henderson said the fact that prices have held steady despite what some see as ideal whether has prompted some traders to ask "what's going on?"

The weather is mostly seen as bearish, with some rain in the forecast this weekend expecting to halt planting in the short-term, but ultimately benefiting farmers' whose fields were starting to get dry.

Funds bought an estimated 5,000 contracts. One trader, questioning the market's fundamentals, said "it just seems like the stupid money keeps coming."

CBOT oats ended higher Wednesday. May oats closed up 3 cents to $2.12 per bushel and July oats settled down 4 cents to $2.19 1/2.

Ethanol futures were higher. May ethanol settled up $0.019 to $1.584 per gallon and June ethanol closed up $0.017 to $1.602.


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




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