May 2, 2006

 

CBOT Corn Review on Monday: Mixed in choppy trade

 

 

Corn futures settled on either side of unchanged with the old crop months fractionally lower and the deferred new crop months slightly higher as early fund buying centered in the deferred contracts supported prices, sources said.

 

May corn slipped 1/4 cent to $2.38 per bushel, July fell 1 cent to $2.48, and December edged 1/4 cent lower to $2.71 1/2.

 

Fund buying, most of it in the new crop months provided early support to corn with stronger wheat and soybean futures adding light support, a commission house analyst said. Stronger crude oil and precious metals markets also acted as support he added.

 

However, corn acted tired Monday, despite the support, he said. Corn is acting like the oldest market, with the funds at or near record longs, he noted.

 

"It was a chop-fest in corn today," a floor analyst said.

 

The weak dollar and higher outside markets helped provide support but ideas that planting progress would show that around 50% of the crop would be planted as of April 30 in Monday afternoon's crop progress report limited the upside, he said.

 

The planting pace of corn isn't running behind, so the forecasts for light showers over the next couple of days should actually help the crop. Plus the weather forecast from Thursday on looks beneficial for planting, he added.

 

Export inspections at 33.581 million bushels were slightly below the 35 million to 45 million expected and had little impact a floor trader said.

 

Light to locally moderate showers are forecast Monday and Tuesday in the U.S. western Midwest, with showers lingering in the region on Thursday, DTN Meteorlogix Weather said. Amounts are expected 0.10-0.50 inch in much of the region early in the week.

 

In the eastern U.S. corn belt, light to moderate rain with amounts from 0.25-1.00 inch is expected Monday with additional showers in a narrow band from southeast Missouri and the lower Ohio river valley Tuesday and Wednesday, DTN Meteorlogix Weather said. There is a chance for light to moderate rain or thunderstorms in parts of the region on Thursday and into Friday, DTN Meteorlogix Weather said.

 

Buyers Monday included Citigroup, which bought 1,500 December and 1,500 July, Prudential Financial bought 1,500 December, Man Financial bought 1,500 December, Bunge bought 500 July, FC Stone bought 500 July and Calyon Financial bought 500 July.

 

Sellers Monday included ABN Amro, which sold 1,000 July, Fimat sold 1,000 July, FC Stone sold 800 December, Calyon Financial sold 500 July, and Man Financial sold 500 July.

 

Commodity fund buying was estimated at 6,000 contracts.

 

Oat futures settled higher on fund buying, with a higher Canadian dollar limiting hedge pressure and adding to the gains, floor sources said. The July contract rose 3 1/4 cents to $1.93 3/4 per bushel.

 

Ethanol futures didn't trade and ended mostly higher. The spot month May contract slipped 1/2 cent to $2.72 per gallon and the June contract gained 3 cents to $2.64.

 

On Monday the U.S. Department of Agriculture is scheduled to release the weekly crop progress at 3:00 p.m. CDT for the week ended April 30. Last week, 25% of the crop was reported planted versus 28% in 2005 and the five-year average of 22%.