May 26, 2007

 

CBOT Corn Review on Friday: Settles mostly higher in choppy trade

 

 

Chicago Board of Trade corn futures finished mostly higher in choppy trading, shrugging off earlier weakness as participants evened up their positions ahead of the long weekend at the close.

 

July corn slipped 1/2 cent to US$3.76 per bushel, September rose 1/2 cent to US$3.77 1/4, and December gained 2 1/4 cents to US$3.75.

 

Nobody wanted to go home with a big position ahead of the long weekend with uncertain weather forecasts for next week, an analyst said.

 

Bull spread unwinding was a major feature in the session with the lack of follow through from Thursday leading participants to liquidate some of their July/December spreads, an off-floor analyst said.

 

"Dueling" midday weather forecasts - with some forecasters expecting drier weather next week and others leaving rain in the forecast - also led to uncertainty, the analyst said.

 

Near the close, prices firmed as participants who had sold corn earlier in the day bought it back with prices making new highs for the session.

 

Volume activity Friday was light as some participants chose to get an early start on the long weekend.

 

The CBOT is closed Monday in observance of Memorial Day.

 

Price direction on Tuesday depends on how much rainfall the eastern U.S. Midwest receives over the weekend and the forecast Monday night, the off-floor analyst said.

 

Commodity fund selling was estimated at 3,000 contracts.

 

Oat futures settled lower as light commission house selling kept the market under pressure all day, a floor trader said.

 

July oats declined 5 1/2 cents to US$2.75 1/2 per bushel and December dropped 4 1/4 cents to US$2.64 3/4.

 

Ethanol futures ended higher in thin activity. June ethanol gained 3.1 cents to US$2.206 cents per gallon and July rose 1.3 cents to US$2.073.

 

Friday afternoon, the Commodity Futures Trading Commission is scheduled to release the commitment of traders report for the period ending May 22.

 

Tuesday, the U.S. Department of Agriculture is scheduled to release the weekly export inspections report at 11:00 a.m. EDT and the weekly crop progress report for the week ending May 27 at 4:00 p.m. EDT (2000 GMT).