June 1, 2006

 

CBOT Corn Outlook on Thursday: Down 1-2 cents on outside markets, spillover

 

 

Corn futures at the Chicago Board of Trade are predicted to begin pit trading 1-2 cents lower as lower outside markets and spillover selling from Wednesday's trade are expected to weigh on prices, floor sources said.

 

In overnight e-CBOT trading, July corn slipped 1 cent to US$2.50 1/4 per bushel and December declined 1 1/2 cents to US$2.75 1/2.

 

Corn should start lower, a floor analyst said. Gold and silver are sharply lower, corn was lower overnight and it could see additional selling from Wednesday's price weakness.

 

The market might see some support from wheat if it stabilizes after the steep declines Wednesday, and it depends on what the funds want to do as it's the first trading day of the new month, a commission house analyst noted. Near-term, the weather remains supportive to crop development, he added.

 

In the western U.S. Midwest, mainly dry conditions are forecast over the next several days except a chance for a few afternoon showers in Missouri on Thursday, DTN Meteorologix Weather said. Temperatures are expected near to above normal Thursday and above normal Friday and Saturday.

 

In the eastern U.S. Midwest, scattered thundershowers, .25-1.00 inch and locally heavier are possible through southern and east-central areas of the region Thursday, with drier conditions forecast for Friday and Saturday. Temperatures are expected to average near to below normal Thursday, near to above normal Friday and Saturday, DTN Meteorologix Weather said.

 

On technical charts, a push below support at the bottom of a price gap at US$2.47 1/2 in July would produce some fresh near-term chart damage, a technical analyst said. First resistance for July corn is seen at US$2.54 and then at US$2.56. First support is seen at Wednesday's low of US$2.50 1/4, and then at US$2.47 1/2.

 

In other corn news, the Korean Corn Processing Industry Association, or Kocopia purchased 110,000 metric tonnes of optional-origin corn from Cargill in a tender concluded Thursday, an association official said.

 

Ukraine planted corn on 2.65 million hectares as of May 31, which is less than the 2.88 million hectares planted on the same date last year, the agriculture ministry said.

 

Corn futures on China's Dalian Commodities Exchange settled lower on long liquidation, sources said, with the benchmark March 2007 contract declining RMB/34 to RMB1,500/tonne.