February 22, 2006

  

CBOT Corn Outlook on Wednesday: Steady on e-CBOT, lack of news

 

 

Corn futures on the Chicago Board of Trade are called to open near steady following the trend on the overnight electronic platform and on a lack of market-moving news, sources said Wednesday.

 

On the e-CBOT, May corn settled unchanged at US$2.37 a bushel and March corn was steady at US$2.26.

 

Corn futures closed slightly lower Tuesday on concerns over the spread of bird flu and its negative impact on global feed demand. March corn finished 1/2 cent lower at US$2.26 and May was down 1/4 cent to US$2.37.

 

Soybeans are also called to open steady, thus price direction for the grain and oilseed pits may be lacking in Wednesday's session, a trader noted. Wheat futures are called 2-3 cents lower.

 

Prices could generate some upside momentum on a delayed Turnaround Tuesday effect in the market, the trader said, in this holiday-shortened week.

 

Meanwhile, corn-growing areas in Brazil received scattered thundershowers in the last 24 hours, as storms moved though Parana and a few were noted in Mato Grosso and Santa Catarina. Little rain was seen elsewhere in the region, DTN Meteorlogix said.

 

A few thundershowers are possible Wednesday in Parana, while dry conditions are seen in Rio Grande do Sul. Showers are expected to develop Thursday in Rio Grande do Sul and move north into Parana by Friday.

 

Argentina's growing areas saw scattered thunderstorms in the last 24 hours, which were confined to southern La Pampa and southern Buenos Aires. Hot, dry conditions with only isolated showers were seen elsewhere, Meteorlogix said.

 

Showers and thunderstorms are expected Wednesday and Thursday, with clearing and windy conditions setting in on Friday. Temperatures are expected to be very high Wednesday but will turn much cooler by Thursday and Friday.

 

Corn futures on China's Dalian Commodity Exchange rose Wednesday on fresh buying. The benchmark September 2006 contract gained RMB14 to settle at RMB1,493 a tonne.

 

In the U.S. cash market, corn spot basis bids were near steady to 1-2 cents weaker at some locations. Country movement was quiet Tuesday as slightly weaker corn and lower soybean futures at the CBOT caused farmers to wait for the next price rally.

 

Technically, March corn put in a quiet inside day on the charts Tuesday. Nearby resistance is met at US$2.26 1/2 and US$2.27, then US$2.27 1/2. Support is uncovered at US$2.24 1/2, US$2.23 1/2, US$2.22 1/4, US$2.20 1/2 and US$2.17.