April 18, 2009

 

CBOT Corn Review on Friday: Ends lower on planting weather, demand

 

 

Chicago Board of Trade corn futures fell Friday on improved planting weather and pressure from demand concerns.

 

May corn ended down 9 1/2 cents to US$3.76 1/4 per bushel, July corn ended down 9 1/2 cents to US$3.85 3/4 and December corn ended down 9 3/4 cents to US$4.07.

 

May corn posted its lowest close since March 11 and lost 13 3/4 cents on the week.

 

"All week, the corn market has been a reluctant follower," said Joel Karlin, analyst for Western Milling.

 

The market had been led by a surging soybean market in recent days, but soybeans were also lower Friday. A key reason for corn's weakness has been forecasts calling for drier, warmer weather next week. That should allow farmers, who have started the season behind schedule in planting, to make good progress.

 

"The forecast is obviously weighing on the corn market, no doubt," Karlin said.

 

Corn was also under pressure this week from concerns about demand, particularly ethanol. California's air resources board is expected to decide next week on a new low-carbon emissions standard that would factor in land-use changes in assessing ethanol's carbon footprint. Such a move would likely dampen ethanol demand.

 

The issue caught traders' attention this week, although analysts said that if approved, the measure's immediate impact on the market would be psychological, and not cause changes to demand right away.

 

A trader added that a U.S. company's purchase of 160,000 metric tonnes of feed wheat from Denmark earlier this week has also weighed on the market.

 

"There's really nothing bullish about corn right now," the trader said.

 

A stronger U.S. dollar added pressure Friday, traders added.

 

In international news, Argentina isn't likely to approve more corn exports anytime soon and if current expectations for low wheat planting hold, little or no wheat will be approved for export next year, the president of the agricultural trade office, or ONCCA, Emilio Eyras, told Dow Jones Newswires on Friday.

 

CBOT oats futures ended lower. May oats ended down 2 1/2 cents to US$1.89 per bushel and July oats ended down 2 cents to US$1.97 3/4.

 

Ethanol futures were virtually unchanged. May ethanol ended up US$0.001 to US$1.574 per gallon and June ethanol settled flat at US$1.588.