May 15, 2009

 

CBOT Corn Review on Thursday: Slightly higher on outside markets, crop

 

 

Chicago Board of Trade corn futures ended slightly higher Thursday amid concerns about the crop and late support from outside markets, analysts said.

 

July corn ended up 1 3/4 cents to US$4.28 1/4 a bushel, September corn ended up 2 cents to US$4.37 1/2 and December corn ended up 2 cents to US$4.49 1/4.

 

The choppy market was lower much of the day but later moved into positive territory, as crude oil, equities and the dollar all shifted and became supportive, said Vic Lespinasse, analyst for grainanalyst.com.

 

Soggy weather in Illinois and Indiana is keeping crop concerns at the forefront of the market, as more rains are expected before the area dries out next week. Agronomists say it could be a week before many farmers possibly have a chance to plant a crop that is already well behind schedule.

 

"Illinois is in a world of hurt," a floor trader said.

 

A late planted crop runs a greater risk of entering the key pollination period during the summer's most extreme heat, and is also more vulnerable to the season's first frost, agronomists say.

 

But the trade's attention was turned Thursday toward weather next week. Traders said the consensus was that it would be better for planting.

 

"It looks to me like there's a window to plant in the eastern corn belt toward the end of next week," said Jeff Hainline, director of Advance Trading. "Farmers can plant just an amazing amount of corn in a 24-hour period anymore."

 

Analysts and agronomists say that in most areas corn growers aren't yet ready to switch their acres over to soybeans, although that could change if conditions don't improve in the next week.

 

Weekly net export sales of 1.183 million metric tonnes were supportive, traders added, while farmer selling is limiting upside potential.

 

Technically the market has resistance in the December contract around the US$4.50 area, traders said. Funds were already long, and that technically there was no reason for them to buy at the moment, a trader added.

 

CBOT oats futures ended slightly lower. July oats ended down 1/2 cent to US$2.28 a bushel and December ethanol ended down 1/2 cent to US$2.49.

 

Ethanol futures ended mixed. June ethanol ended down US$0.004 to US$1.716 a gallon and July ethanol ended down US$0.004 to US$1.729.