CBOT Corn Review on Monday: Ends higher on technical support, Argentina

 

 

Chicago Board of Trade corn futures ended slightly higher Monday, as technical support and underlying concerns about the crop in Argentina propped up the market.

 

March corn ended up 3 1/4 cents to US$3.93 3/4 per bushel, May corn ended up 3 1/4 cents to US$4.04 3/4 and July corn ended up 3 1/4 cents to US$4.15 1/4.

 

The market trimmed its early gains as soybeans retreated, but remained in positive territory all day. The market has traded with a relatively narrow range during the past several days.

 

"The upside remains limited by demand considerations," said John Kleist, broker/analyst for Allendale. "And conversely, the market is trapped by underlying technical support."

 

Kleist and others also add that the market is unable to sustain momentum above US$4 in the March contract. The market briefly climbed above US$4 in early trading before retreating. It also closed below its 20-day moving average of US$3.95 1/4, but remains above its 50-day moving average at US$3.80.

 

Concerns about the crop in Argentina are the market's key focus, traders said, and midday forecasts that showed increased rainfall this week caused soybeans to retreat and also weighed on corn. But the market will monitor each weather forecast update this week, and a trader said the underlying situation in Argentina is still supportive.

 

"I'd call it underpinning-type support, but not a dynamic bullish forecast," a trader said.

 

Farmer selling weighed on the market, although it was more pronounced in soybeans, traders and analysts added. Soybeans have been leading the market, amid ideas that corn needed to match soybeans' gains in order to hold on to planted acreage this year. An analyst said there was some unwinding of corn-soybean spreads Monday.

 

CBOT oats futures contracts ended unchanged Monday. March oats closed at US$2.15 per bushel and May oats closed at US$2.24 1/2.

 

Ethanol futures were higher. February ethanol ended up US$0.014 to US$1.610 per gallon and March ethanol ended up US$0.021 to US$1.621.