CHICAGO (Dow Jones)--Chicago Board of Trade corn futures settled higher
Friday, buoyed by longer-term weather forecasts that predict hot, dry weather
conditions through next week with limited chances for moisture, analysts said.

July corn futures went off the board at $3.41 1/2, down 2 1/2 cents per
bushel; September gained 3 1/4 cents to $3.54 3/4 per bushel; and December also
rose 3 1/4 cents, to $3.68 1/2.

The short side of the market was concerned that the weather could be a threat
and covered positions, said Shawn McCambridge, senior grain analyst at
Prudential Financial.

Light fund buying provided some support, and when the funds are buyers it
tends to diminish selling interest, he said.

Commodity fund buying was estimated at 3,500 contracts.

With the supply and demand report out of the way, the focus is on the
weather, an E-CBOT trader said. The market is starting to believe that there
maybe a potential issue with dryness, the trader added.

Midday weather forecasts expect above-average temperatures and below-normal
moisture next week in the U.S. Midwest, with only a few scattered light showers
and temperatures in the upper 80 degrees Fahrenheit to the mid 90s, DTN
Meteorologix Weather said.

Corn's price direction on Monday will depend upon the overnight weather
forecasts on Sunday, a trader said.

On day session technical charts, electronically traded December remained
above its 10-day moving average but below its 200-day moving average.

In open auction trading, JP Morgan bought 400 December and UBS sold 1,700
December.

In options trading, ADM Investor Services bought 4,000 December $3.00 puts.

Oat futures finished mixed in light, two-sided activity, a commission house
analyst said.

July oat futures went off the board at $2.75 per bushel, down 15 cents;
September slipped 1 cent to $2.69 per bushel; and December gained 1/2 cent to
$2.73 3/4.

Ethanol futures settled higher in modest activity. August ethanol rose 2
cents to $2.019 per gallon and September gained 2.1 cents to $1.921.

On Friday afternoon, the Commodity Futures Trading Commission is scheduled to
release the weekly commitments of traders for the period ended July 10. On
Monday, the U.S. Department of Agriculture is scheduled to release the weekly
export inspections report at 11 a.m. EDT and the weekly crop progress report at
4 p.m. EDT.