June 23, 2006

 

CBOT Corn Outlook on Friday: Lower; lack of inputs, weak outside markets

 

 

Corn futures at the Chicago Board of Trade are expected to begin open auction trading 1/2 cent lower Friday as the lack of fresh inputs and weaker outside markets are expected to weigh on futures at the opening, sources said.

 

In overnight e-CBOT trading, July corn fell 1/2 cent to US$2.30 per bushel, and December also slipped 1/2 cent to US$2.56 1/2.

 

The market should open a little easier, a floor analyst said. There is little fresh news to trade on and the outside markets are weaker, he added.

 

Near term the weather is positive for crop development, longer term it looks a little drier, a floor source said. Corn is waiting on July weather forecasts, when the crop's pollination phase occurs. Trading could be choppy and two-sided today, he noted.

 

In the western U.S. Midwest, scattered showers and thunderstorms with amounts of .25-.75 inch are forecast on Saturday, with mostly dry conditions expected from Sunday through Tuesday, DTN Meteororlogix Weather said. Temperatures are expected to be near to below normal in the period.

 

In its 6-to-10 day forecast DTN Meteorologix Weather expects temperatures to average near to below normal and precipitation near to below normal.

 

In the eastern U.S. Midwest, mostly dry conditions are expected Saturday before scattered showers and thunderstorms on Sunday and Monday with amounts of 0.25-1.00 inch and locally heavier, DTN Meteorologix Weather said. Temperatures are forecast to near to below normal.

 

In the 6-to-10 day outlook temperatures are expected to average near to below normal and rainfall near to above normal.

 

Cash corn basis bids were mostly unchanged with central Illinois unchanged and even with the July future.

 

On technical charts, the next downside price objective for July is closing prices below the March low of US$2.27 3/4, a technical said. First resistance for July is seen at US$2.33 1/2, Thursday's high and then at US$2.35 1/2. First support is pegged at US$2.29 3/4 and then at this week's low of US$2.28.

 

In other corn news, corn futures on China's Dalian Commodities Exchange settled lower with the March contract down RMB10 to RMB1,472/tonne.

 

Friday afternoon the Commodity Futures Trading Commission is scheduled to release the commitment of traders report for the period ending June 20.