April 11, 2006

 

CBOT Corn Review on Monday: Small losses on good planting weather

 

 

Corn futures traded at the Chicago Board of Trade finished Monday with small losses as forecasts for favorable planting weather and the lack of any positive stimulus from Monday morning's U.S. Department of Agriculture supply and demand report weighed on prices, floor traders said.

 

May corn fell 1 3/4 cents to US$2.41 1/4 per bushel, July slipped 1 3/4 cents to US$2.52 3/4, and December also settled 1 3/4 cents lower at US$2.72 3/4.

 

The weather is favorable for planting corn and the idea is that as long as the weather is good, farmers will plant more corn at the expense of soybeans no matter what was in the USDA's planting report, said Vic Lespinasse, of AG Edwards & Sons.

 

In addition, Monday's USDA report was slightly negative, he added. The USDA reported Monday morning that 2005-06 corn ending stocks declined by 50 million bushels to 2.301 billion bushels as the USDA raised exports by 50 million bushels. This was below the 2.351 billion reported in the March supply and demand report but above the average analyst estimate of 2.259 billion bushels.

 

Light profit taking after last week's late gains also added to the weak tonnee, as did technical selling and light commodity fund selling, a commission house analyst said.

 

Commodity fund selling was estimated at 1,500 contracts.

 

Surging precious metals and energy prices were ignored as the corn market is focused on the weather, a floor analyst added.

 

Dry weather with only a few light showers are forecast on Tuesday and then again on Thursday and Friday for the western U.S. Midwest, DTN Meteorlogix Weather said. Temperatures are predicted to average near to above normal in the period.

 

In the eastern U.S. Midwest, there is a chance for a few light sprinkles during Tuesday and Wednesday. Possible showers are forecast for the eastern section of the region later this week with temperatures expected to average near to above normal, DTN Meteorlogix weather said.

 

Export inspections were released during the session and had no impact, sources said. The USDA reported that corn inspected for export totaled 35.606 million bushels for the week ended April 6, within the range of analysts estimates.

 

Buyers Monday included ABN Amro, which bought 4,000 May, Rand Financial bought 500 December, Fimat bought 300 May and 300 December, Goldenberg-Hehmeyer bought 300 December, JP Morgan bought 300 May and 500 July, and Bunge bought 200 December.

 

Sellers Monday included ABN Amro, which sold 2,000 May and 800 December, Fimat sold 600 December, 200 May and 200 September, Man Financial sold 400 December, JP Morgan sold 500 May and 400 December, RJ O'Brien sold 500 May and Rand sold 300 May.

 

In spread trading the Refco division on Man Financial spread 2,000 December-July and ABN Amro spread 1,000 May-July.

 

Oat futures ended fractionally mixed in quiet range bound trade as the lack of a feature continues to limit price volatility, a floor analyst said. No changes were made to the Oat supply and demand balance sheet in this morning's USDA reports. The May contract settled 3/4 cent lower at US$1.72 1/4 per bushel, and the July contract ended 1/4 cent lower to US$1.76 1/2.

 

Ethanol futures ended higher. The April contract did not trade but rose 2 1/2 cents higher to US$2.67.