April 24, 2006

 

CBOT Corn Outlook on Monday: Called 2-3 cents higher overnight trade

 

 

Corn futures at the Chicago Board of Trade are forecast to start trading 2-3 cents higher Monday based on stronger overnight prices in the absence of other fresh news, floor sources said.

 

In overnight e-CBOT trading, May corn gained 2 3/4 cents to US$2.39 1/4, July increased 2 1/2 cents to US$2.50 1/2, and December ended up 2 1/4 cents to US$2.73.

 

There is no earth shattering news out, but the market was higher overnight and the CFTC report on Friday revealed the funds got longer, so the market is going to be watching to see what they want to do, a floor analyst said.

 

The funds are in charge, a floor trader said. Energy is weaker, the metals are lower and the dollar is flat, he said. Maybe the market knows something we don't, the trader added.

 

The Commodity Futures Trading Commission report Friday afternoon that large non-commercial trading increased their net long corn futures and options on futures positions by 29,592 contracts as of April 18.

 

The large non-commercial net long position is 208,642 contracts.

 

Large commercial traders increased their net short positions by 21,524 contracts as of April 18, the CFTC reported Friday. Commercial traders are net short 97,536 corn futures and options on futures.

 

In the western U.S, Midwest, after scattered showers and thunderstorms on Monday that will bring .25-1.00 inch of rain, dry weather returns from Tuesday through Thursday, DTN Meteorlogix weather said. Temperatures in the period will average below normal Tuesday-Wednesday and near normal Thursday.

 

In the eastern U.S. Midwest, dry conditions will return to the area Wednesday and Thursday after scattered showers ad thunderstorms bring .25-.75 inch of rain on Tuesday, DTN Meteorlogix Weather said. Temperatures will be near normal during the next 2 days and near to below normal after.

 

On technical charts, first resistance for July corn is pegged at US$2.50 and then at US$2.53 1/2, a technical analyst said. First support is seen at US$2.45 and then at US$2.42 1/2.

 

In other corn news, Corn futures on China's Dalian futures exchange finished higher on speculative buying following last week's declines, sources said. The January contract settled RMB17 higher at RMB1,405/tonne.

 

Monday morning, the U.S. Department of Agriculture is scheduled to release the weekly export inspections report at 10:00 CDT (1500 GMT)