February 13, 2010
CBOT Corn Review on Friday: Ends down on profit-taking, strong dollar
Chicago Board of Trade corn futures ended slightly lower Friday amid light profit-taking and bearish outside markets, traders said.
March corn ended down 1 3/4 cents to US$3.61 1/2 per bushel, and May corn ended down 1 3/4 cents to US$3.73 1/4. The March contract gained 10 cents on the week.
A stronger dollar and weaker crude oil, along with slumping wheat, set the tonnee, as tighter China lending standards weighed on commodities generally, traders said.
Also, after four straight days of gains, some profit-taking was to be expected Friday ahead of the three-day holiday weekend, analysts said.
"I think a lot of people thought we'd pound it down hard today," says Joel Karlin, analyst with Western Milling.
The market was lower throughout the session but ended off its lows, and traders say the market seems to have stabilized in a range that will keep it between US$3.50 and US$3.75.
A large South American crop and unspectacular demand are limiting the upside. A lack of farmer selling has strengthened basis, the difference between cash and futures prices.
But that farmer selling is expected to increase as the temperature warms. The quality of the crop has been in question, and problems could increase the longer it is stored, analysts said.
Funds sold an estimated 2,000 contracts Friday. The market will be closed Monday for the U.S. Presidents Day holiday.
In other news, Argentina will allow 10 million tonnes of corn to be exported this year, the Agriculture Ministry said in a press release Friday.
Argentina tightly regulates corn and wheat exports, allowing shipments only after sufficient stocks are set aside for domestic supply.
Excellent growing conditions have boosted this year's corn crop, with total output likely to be significantly higher than early expectations.
CBOT oats futures ended up slightly. March oats climbed 1/2 cent to US$2.32 3/4 per bushel and May oats ended up 3/4 cents to US$2.41 3/4.
