June 20, 2000

 

CBOT Corn Review on Thursday: Corn falls on profit taking, outside markets

 

 

Corn futures followed a general retreat among the agricultural commodities Thursday, which traders attributed mostly to outside market influences, including a greater than US$4 drop in crude oil.

 

Chicago Board of Trade July corn futures fell 18 1/2 cents to US$7.27 3/4 a bushel. Nearby contracts of CBOT soybeans, wheat and rice also fell by double digits.

 

"The grains are kinda caught in whatever the energy's doing - that's probably the leading factor," said Advance Trading broker Terry Reinhart.

 

He also noted that Congress is considering a bill to limit speculative investment in commodity index funds.

 

"It's technical selling on good weather and outside market influences," a CBOT floor trader said.

 

Brugler Marketing and Management noted the bearish influence of the weather, but said profit taking was a factor in Thursday's trading, as well.

 

T-Storm Weather isn't so sure about the direction of the extended forecast.

 

"Until we have a better grasp on how the current pattern will change, we will feel slightly uncomfortable with both wet and dry forecasts for the Corn Belt next week," the private weather forecaster said, noting that portions of Nebraska, Iowa and Illinois all have the potential for "significant rainfall" next Tuesday.

 

"We have generally been keeping the threat for t-storms next week due to high soil moisture and our suspicion that dryness this week is occurring due to temporarily cool upper-level winds," the firm said.

 

But, "we feel it is best to simply continue to monitor since these chances are 5-6 days away," the firm added.

 

Funds sold 5,000 corn contracts at the CBOT.