CHICAGO (Dow Jones)--Chicago Board of Trade corn futures ended lower Thursday, correcting along with other grains and soybeans as harvest concerns eased.

December corn ended down 10 cents to $3.73 per bushel, and March corn ended down 10 cents to $3.85.

Although forecasts continued to call for rain, traders noted some potential drying over the weekend and early next week. They also said that some of the harvest concerns that have fueled the market's recent rally were overblown in the first place.

"Harvest delayed is not harvest denied," said John Kleist, broker/analyst with Allendale.

Chad Henderson, an analyst with Prime Ag Consultants, said that it would take more excessive rains to truly bring harvest to a halt, and that farmers can be out harvesting the day after it rains half an inch.

"John Deere doesn't sell a four-wheel combine so that people have to wait until it's perfect to harvest their crop," he said.

Some traders and analysts said there wasn't a significant shift in weather forecasts to justify the market's slip, and that the correction had a lot to do with money flow. Funds, which have been heavy buyers lately, sold an estimated 7,000 contracts.

"We kind of made our push; now it's running out of gas," Henderson said. He said farmer selling stopped the rally, and the money flow into the market.

Farmer selling has emerged to pressure the market, traders said, and could continue as more crop gets harvested and put right into the supply pipeline. Basis weakened Thursday despite the drop in futures.

"A weak basis in a declining futures market is not a good indicator, especially during harvest," said Iowa commodity trade adviser Karl Setzer.

Futures prices dropped Thursday despite strong gains in crude oil.

Kleist, who thinks corn is more properly valued around the $3.50 area as opposed to current levels, nonetheless thinks it might be too early to declare the rally over and "put this thing to bed."

"Until you settle under $3.70, and maybe under trend-line support at $3.67 1/2, there's no material damage yet," he said.

Friday morning, the trade will take a look at weekly export sales from the U.S. Department of Agriculture. Traders expect sales to be relatively weak.

CBOT oats ended lower in a correction from recent gains. December oats ended down 5 cents to $2.53 1/2 per bushel, and March oats ended down 5 cents to $2.66 1/2. Despite the losses, the December contract is still up 13 1/2 cents so far this week.

Ethanol futures ended lower. November ethanol ended down $0.006 to $1.882 per gallon, and December ethanol ended down $0.011 to $1.827.


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