May 25, 2006

 

CBOT Corn Outlook on Thursday: Called steady, two-sided trade seen

 

 

Corn futures at the Chicago Board of Trade are expected to open at steady levels Thursday, with little market moving news to impact prices on the opening, floor sources said.

 

In overnight e-CBOT trading, July corn slipped 1 cent to US$2.48 1/2 per bushel and December corn fell 3/4 cent to US$2.73 1/2.

 

There was not much news out overnight, a floor analyst said. This morning's export sales were all right, but within expectations, he noted. Corn should trade on both sides of Wednesday's close, the analyst added.

 

Near term the weather is favorable for crop development. Temperatures will be warm, but there has been some moisture, which is helping the crop, a floor trader said. There could be some position squaring ahead of the long weekend as well, he added.

 

Corn weekly export sales totaled 1.175.2 million metric tonnes for the week ended May 18, the U.S. Department of Agriculture reported Thursday morning, within the range of analyst's expectations. Included in this total were sales of 38,700 tonnes for the 2006-07 crop year.

 

In the western U.S. Midwest, there is a chance for sprinkles and light showers Thursday in northern and eastern areas with mainly dry conditions or a few light showers Friday and Saturday in the region, DTN Meteorologix Weather said. Temperatures are forecast to average near to above normal Thursday and above normal Friday and Saturday.

 

In the eastern U.S. Midwest, light to moderate showers are forecast in southern and eastern areas of the region Thursday and Friday. Mainly dry conditions with only a few light sprinkles are expected on Saturday, DTN Meteorologix Weather said. Temperatures are expected to average near to below normal northeast and above normal southwest Thursday and Friday and above normal on Saturday, Meteorologix Weather said.

 

On technical charts, the bears still have downside technical momentum, a technical analyst said. First resistance for July corn is seen at US$2.51 3/4, Wednesday's high and then at US$2.55. First support is pegged at Wednesday's low of US$2.4 and then at US$2.47 1/2.

 

In other corn news, China's Xiwang Sugar Holdings Co. (2088.HK) said Thursday that is will import 50,000 metric tonnes of genetically-modified corn from the U.S. in July to ensure a steady supply, a company spokesperson said. After the first shipment, which will be just a trial, the company plans to import another 50,000 tonnes, the spokesperson added.

 

Corn futures on China's Dalian Commodities Exchange finished lower in narrow trading. The March contract fell RMB/6 to RMB 1,513/tonne.