CBOT corn futures end up slightly on soy support

US corn futures ended slightly higher Thursday on spillover support from soy, but the market was unable to match soy's gains as an optimistic crop outlook weighed.

CBOT July corn ended up 1 cent to US$3.49 1/2 a bushel, and December corn closed up 1/2 cent to US$3.70 1/4.

Benign US weather and an optimistic crop outlook are looming over the market. Corn was lower in early trade and eventually moved into slightly positive territory as soy rallied more than 20 cents thanks to tight cash supplies in that market.

According to analysts, technically, the market took a blow Wednesday after falling below US$3.50, which remained a bearish factor Thursday (June 3), adding that traders seem to be convinced the US is on track for a record crop.

Market bulls are keeping an eye on long-range forecasts, as there is some speculation that as a fading El Nino weather pattern gives way to La Nina, hotter and drier weather could descend upon the Midwest.

One floor trader said that midday weather forecasts calling for more intense heat June 12-16 gave the market a little support, but traders also acknowledge that, for now, there are few apparent threats to the crop.

Analysts noted the lack of any confirmed new purchases of US corn by China continues to weigh on market sentiment. The USDA will release its weekly net export sales report Friday (June 4) at 8:30 a.m. EDT.

Meanwhile, on June 10, the USDA will issue revised supply and demand estimates. Traders say that report is unlikely to include significant changes to the US or world balance sheets.