May 1, 2009

 

CBOT Corn Review on Thursday: Ends higher on continued soggy weather

 

 

Concerns about continued planting delays and strong export sales pushed Chicago Board of Trade corn higher Thursday, analysts said.

 

May corn was up 3 1/4 cents to US$3.96 1/4 per bushel, July corn was up 2 1/4 cents to US$4.03 1/2, and Dec corn ended up 1 1/2 cents to US$4.23 1/4.

 

Soggy weather in the U.S. corn belt, particularly in southern and eastern areas, is prompting growing concern about the crop, analysts said.

 

What was already a wet spring has been followed by stormy weather this week and forecasts calling for more rain consistently through the weekend and into next week. The delays are increasing the likelihood that some producers switch their corn acres to soybeans.

 

Analysts added that even in the western corn belt, where there has been more progress, concerns are growing that seeds were planted too early, and that being stuck in cold, wet soil could affect germination.

 

The market surged early, extending Wednesday's rally, but swooned in midday trading thanks in part to cash grain movement, which has capped the market around US$4 for weeks. But the farmer selling pace was "not very robust," said Don Roose, analyst for U.S. Commodities in West Des Moines.

 

Farm Futures analyst Arlan Suderman said the more subdued farmer selling might be a sign that producers are opting not to sell the grain they have because they have been unable to plant this year's crop as of yet.

 

Profit-taking at the end of the month was also a factor in the midday retreat, analysts said.

 

"Yesterday was a big run, and people are taking some profits off the table," said Jason Ward, analyst for Northstar Commodity. He added that Friday is May Day, and that many traders in Europe and Asia who likely be off were encouraged to take profits ahead of the long weekend.

 

Both corn and soybeans ran into resistance at two-week highs, he said.

 

"We're trading in a range," said Suderman. "We get to the top of the range, we sell it; we get to the bottom of the range, we buy it."

 

CBOT oats futures ended slightly higher. May oats ended up 1 cent to US$1.94 per bushel and July oats ended up 1 cent to US$2.03.

 

Ethanol futures were virtually unchanged. May ethanol ended down US$0.002 to US$1.610 per gallon and June ethanol ended up US$0.004 to US$1.604.