March 28, 2009

 

CBOT Corn Review on Friday: Slides on dollar, soy, wheat

 

 

Chicago Board of Trade corn futures ended lower Friday amid broad outside pressures, as a stronger dollar dragged commodities lower.

 

May corn was down 3 3/4 cents to US$3.87 per bushel, July corn was down 3 3/4 cents to US$3.97 1/2, and December corn was down 3 1/2 cents to US$4.19 1/4.

 

Corn's losses were muted compared with soybeans, which lost 27 cents in the nearby contract. Wheat was also lower, along with crude oil and equities.

 

"Rallies are tough to come by right now when the wheat and beans are under pressure," said John Kleist, broker/analyst for Allendale.

 

The market has no strong reason to rally ahead of Tuesday's planting intentions and quarterly grain stocks reports, analysts said. The trade is expecting a friendly cut in planted acreage from 2008, but some losses have been already priced into the market, traders said.

 

The U.S. Department of Agriculture will release the reports Tuesday at 8:30 a.m. EDT.

 

The market has drifted lower this week after being unable to hold above US$4. Funds have recently gone net long, but since have moved to the sidelines waiting for signs the market will move another leg lower, analysts said. The market traded within a narrow 3-cent range as funds sold an estimated 3,000 contracts Friday.

 

"They're waiting for some kind of breakout, or they're waiting for the planting intentions report, or they're waiting for God-knows-what to see if that's the way we're going to go," Kleist said.

 

A trader said he expects to see continued weakness across a range of markets as investors realize that there are still "lots of problems" in the world economy.

 

Weather will begin to become a bigger factor in the market after the planting intentions report, traders said. Some are already voicing concerns about delays to planted acres.

 

CBOT oats futures ended lower. May oats ended down 1 1/2 cents to US$1.95 1/2 per bushel and July oats settled down 1 1/2 cents to US$2.04.

 

Ethanol futures were lower. May ethanol ended down US$0.018 to US$1.588 per gallon and June ethanol settled down US$0.012 to US$1.613.