May 27, 2006

 

CBOT Corn Review on Friday: Thin gains on pre-weekend short covering

 

 

Corn futures at the Chicago Board of Trade settled modestly higher Friday but off levels reached earlier in the session as late local selling trimmed the gains, floor sources said.

 

Futures were supported for much of the session by short position holders covering ahead of the three day holiday weekend, sources added.

 

Commodity fund buying also added support with buying estimated at 4,600 contracts.

 

The CBOT will be closed on Monday in observance of Memorial Day.

 

July corn settled 3/4 cent higher at US$2.54 per bushel and December increased 1 cent to US$2.79.

 

Short covering was the feature of the session, a commission house analyst said. The shorts did not want to hold their positions ahead of the weekend so they covered, he added.

 

Talk that some forecasters had increased the chance of rain expected next week limited the gains as did the inability of July to fill an upside gap created late last week between US$2.57 1/2 and US$2.59 1/2 on daily technical charts, a floor analyst said.

 

After a chance for a few thunderstorms to develop on Saturday, mostly dry conditions are forecast for Sunday in the western U.S. Midwest, DTN Meteorologix Weather said. Another round of scattered showers and thunderstorms is expected on Monday and Tuesday, DTN Meteorologix Weather said. Temperatures during the weekend will average in the upper 80s to low 90s Fahrenheit.

 

In the eastern U.S. Midwest, there is a chance for a few thundershowers with low coverage forecast for the weekend, before additional isolated thundershowers forecast for Monday, DTN Meteorologix Weather said. Temperatures will range from the low 80s F to low 90s F during the weekend and above normal on Monday.

 

Buyers Friday included ABN Amro, which bought 1,500 July. Calyon bought 1,500 July, JP Morgan bought 1,200 December, Rand bought 700 July, Tenco bought 600 September, and FC Stonnee bought 500 December.

 

Sellers Friday included ABN Amro, which sold 1,800 July. Calyon sold 1,000 July, Merrill Lynch sold 1,000 July, JP Morgan sold 800 September and 700 December, and Rand sold 700 July.

 

Oat futures settled lower as follow-through fund selling weighed on prices, sources said. The July contract fell 2 1/4 cents to US$1.80 1/4, and December settled 1/4 cent lower to US$1.82.

 

Ethanol futures ended higher in light trade in a continuation of the recent trend, an ethanol trader said. The June contract settled 9 cents higher at US$3.42 per gallon and the July contract finished up 10 cents at US$3.38.

 

Friday afternoon the Commodity Futures Trading Commission is scheduled to release the commitment of traders report as of May 23.

 

The Chicago Board of Trade is closed Monday, May 30, in observance of Memorial Day.

 

On Tuesday, the U.S. Department of Agriculture is scheduled to release the weekly crop conditions report.