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  • News Desk
  • Dec 30th, 2005
  • Comments Off on Corn ends mixed amid quiet exports, stocks
Corn futures at the Chicago Board of Trade closed mixed on Wednesday with routine exports and plentiful stocks of feed grains acting as an anchor on the market, traders said.

But some support surfaced amid spillover buying from a rally in wheat and from occasional short covering by funds and slow farmer selling.

Traders remained cautious amid persistent talk that index funds may soon buy corn futures as a long-term hedge against inflation.

CBOT corn closed 3/4 cent per bushel higher to 1/2 lower, with March up 3/4 at $2.16-1/4 per bushel.

Technical traders were focused on some signs the corn market was a bit overbought.

The nine-day relative strength index for March closed Tuesday at 75.

Traders view a reading of 70 or more as indicating an overbought market.

Technical support in the March contract was at $2.12-1/2 per bushel and resistance was at $2.18-1/4.

Exports were quiet overnight.

Traders remained a bit cautious amid news this week that Japan has begun mandatory inspections of all US food corn arrivals at Japanese ports for aflatoxin, after the cancer-causing mold was found in a shipment recently.

Cash basis bids for corn in the Midwest early on Wednesday were mostly unchanged as the market remained quiet following the Christmas holiday.

Oats futures closed unchanged to 3-3/4 cents per bushel higher, with March 3-3/4 at $1.97-1/2 per bushel.

Copyright Reuters, 2005


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