April 28, 2006

 

CBOT Corn Outlook on Friday: 1-2 cents higher on forecasts, outside markets

 

 

Corn futures at the Chicago Board of Trade are expected to begin trading 1-2 cents higher Friday as wet weather forecasts for this weekend, higher outside markets and follow through from stronger overnight trade support prices, sources said

 

In overnight e-CBOT trading, May corn rose 3 cents to US$2.34 1/4 per bushel, July gained 2 1/4 cents to US$2.45, and December rose 2 cents to US$2.68.

 

The wet weather forecast for the weekend has some people talking about possible planting delays for the crop, and the outside markets are higher this morning which could add support, a floor analyst said.

 

The firm tone in overnight activity should support the market at the start, a commission house analyst said. However, it's the end of the month and a lot will depend on what the funds want to do, he added.

 

In the western U.S. Midwest and southeast portion of the Northern Plains, rain and thunderstorms are expected to develop Friday and continue into Sunday with amounts of .50-2.00 inches with coverage near 100%, DTN Meteorlogix Weather said.

 

In the eastern U.S. Midwest, episodes of showers and thundershowers in the western portion of the eastern U.S. Midwest are forecast during the weekend, DTN Meteorlogix Weather said. Rainfall amounts should average .30-1.50 inches and locally heavier. A few showers may reach the eastern portion of the region on Sunday.

 

Deliveries posted against the May contract totaled 1,318 contracts. Issuers included the house account of ABN Amro, which issued 632 contracts, the customer account of ABN Amro, which issued 130 contracts, and the customer account of Combs, a division of Cunningham, which issued 127 contracts.

 

Stoppers included the customer account of Bear Stearns, which stopped 600 contracts and the customer account of UBS Securities, which stopped 167 contracts.

 

On technical charts, first resistance for July corn is pegged at US$2.45, and then at US$2.48. First support is seen at US$2.40 1/4, Thursday's low and then at US$2.39, a market technician said.

 

Corn futures on China's Dalian futures exchange settled higher with the January contract up 11RMB/tonne at RMB1,434/tonne.