March 20, 2007
CBOT Corn Outlook on Tuesday: Mixed; weak technicals hamper upside
Chicago Board of Trade corn futures are predicted to start day session trading mixed Tuesday as the absence of fresh news and continued poor technical pattern are expected to limit the upside, a commission house analyst said.
In overnight electronic trading, May corn finished unchanged at US$3.98 per bushel, July slipped 1/4 cent to US$4.09 3/4 and December fell 1 cent to US$4.05. E-CBOT volume in May was 3,510 contracts.
Corn could trade two-sided, the analyst said. The technical picture remains weak, and the nearby months could remain under pressure if Monday's bear spreading is a feature. However, the outside markets are higher and might act as support and the corn market is due for a bounce, he added. Although there continues to be an absence of fresh inputs, corn should see some support ahead of the U.S. planting intentions report on March 30, he added.
In the U.S. Midwest rain is expected Wednesday in western sections of the region before clearing on Thursday, DTN Meteorologix Weather said. Rainfall totals range from .30-1.50 inches, though lesser amounts are expected northwest. In the eastern half of the region there is a chance for showers Wednesday as well as on Thursday, Meteorologix Weather said. Rainfall potential is .30-1.00 inch and locally heavier. Temperatures during the period are expected to average above normal in the region both Wednesday and Thursday.
On daily open auction technical charts, CBOT May corn closed lower but nearer the session high, a market technician said. May remains in a four-week old down-trending channel on the daily bar chart, the technician said.
First resistance for May corn is seen at US$4.01 1/2 and then at US$4.05. First support is seen at US$3.95 and then at US$3.92 1/4.
In other corn news, the Philippine National Food Authority said Tuesday it will hold a tender April 11 to purchase 200,000 metric tonnes of optional origin corn at zero tariff for delivery between June and July this year.
