May 24, 2008

 

CBOT Corn Review on Friday: Higher on outside markets; trade cautious

 

 

Chicago Board of Trade corn futures ended higher Friday on strength from outside markets, amid light trading due to weather uncertainty and the upcoming weekend.

 

July corn was up 4 cents to US$5.96 3/4 per bushel, September corn was up 4 1/4 cents to US$6.12 3/4, and December corn was up 4 cents to US$6.27 1/4.

 

An analyst said there was little conviction among either bulls or bears heading into the long Memorial Day weekend, which subdued trading. The CBOT will be closed Monday in observance of the holiday.

 

Corn prices continued to track crude oil, traders said. Corn was split from soybeans, however, which rallied higher on continued concerns about the farmers strike in Argentina.

 

Pre-weekend liquidation drove corn prices lower by 1 to 3 cents in morning trading, but the market rallied along with crude, said Shawn McCambridge, a senior grains analyst with Prudential-Bache. The market remained on its sideways trajectory, he said.

 

"The market seems a little uncertain when it reaches its recent new highs," McCambridge said.

 

Traders are awaiting significant new weather that could move the market, analysts said. Forecasts call for rain in the western U.S. corn belt through the weekend, but analysts say the rain's effect is mixed: Areas that have already been planted will welcome the wet weather, but it could further delay growers who have yet to finish their plantings.

 

Traders and analysts estimate Tuesday's U.S. Department of Agriculture crop progress report will show plantings between 85% and 90% complete.

 

An analyst said that late planting and emergence will linger through the growing season, and could become a major factor in the market if the Midwest sees more harsh weather. He said parts of the corn belt that have yet to be planted will have a difficult time getting seeds into very wet soil.

 

"That last 5-10% of the crop is going to go in pretty tough," he said.

 

CBOT oats were lower in light trading before the weekend, a trader said. He said some early commercial buying of December oats faded later in the day. July oats were down 3 cents to US$3.85 1/2 per bushel, September oats were down 3 cents to US$3.96 1/2 and December oats were down 1 1/2 cents to US$4.13 1/2.

 

Ethanol futures were lower. June ethanol was down US$0.003 to US$2.501 per gallon and July ethanol was down US$0.012 to US$2.489.