June 6, 2009

 

CBOT Corn Review on Friday: Ends lower on dollar, profit-taking

 

 

Chicago Board of Trade corn futures ended lower Friday on end-of-week profit-taking and pressure from a stronger dollar, analysts said.

 

July corn was down 4 1/2 cents at US$4.44 per bushel, but gained 7 3/4 cents on the week. December corn ended down 4 cents at US$4.67 1/2.

 

Outside markets were a mixed influence, with higher equities canceled out by the strength in the dollar, analysts said. Traders say the dollar and investment flows have largely dictated the market's movement lately. A stronger dollar makes U.S. exports less attractive.

 

Traders noted profit-taking ahead of the weekend, although they said that the recent bullish tonnee in the market and concerns about the crop kept sellers from being too aggressive.

 

The trade is beginning to look ahead to next week's supply-and-demand report. Analysts on average project a very slight increase in the government's 2008-09 carryout projection and a small cut in the 2009-10 carryout projection.

 

"The focus next week will be on the monthly crop report, which will be out on Wednesday," David Fiala, FuturesOne president, said in a commentary for DTN.

 

Traders said there was little new fundamental news about the market, but concerns about the size of the crop are underpinning corn prices. Breaks in the market are largely being viewed as buying opportunities, analysts said.

 

The market held above its 200-day moving average.

 

Although the market is seen as having more upside potential, some analysts have also noted that demand is relatively weak, which could keep a lid on prices. Export sales were lower this week, and troubles in the livestock industry will likely depress feed demand for months, if not into next year, they said.

 

CBOT oats futures ended lower. September oats were down 7 1/2 cents at US$2.56 per bushel, and December oats ended down 6 3/4 cents at US$2.78.

 

Ethanol futures were lower. July ethanol ended down US$0.026 at US$1.765 per gallon and September ethanol ended down US$0.017 at US$1.775.