July 14, 2007

 

CBOT Corn Review on Friday: Settles higher on hot, dry weather forecast

 

 

Chicago Board of Trade corn futures settled higher Friday, buoyed by longer-term weather forecasts that predict hot, dry weather conditions through next week with limited chances for moisture, analysts said.

 

July corn futures went off the board at US$3.41 1/2, down 2 1/2 cents per bushel; September gained 3 1/4 cents to US$3.54 3/4 per bushel; and December also rose 3 1/4 cents, to US$3.68 1/2.

 

The short side of the market was concerned that the weather could be a threat and covered positions, said Shawn McCambridge, senior grain analyst at Prudential Financial.

 

Light fund buying provided some support, and when the funds are buyers it tends to diminish selling interest, he said.

 

Commodity fund buying was estimated at 3,500 contracts.

 

With the supply and demand report out of the way, the focus is on the weather, an E-CBOT trader said. The market is starting to believe that there maybe a potential issue with dryness, the trader added.

 

Midday weather forecasts expect above-average temperatures and below-normal moisture next week in the U.S. Midwest, with only a few scattered light showers and temperatures in the upper 80 degrees Fahrenheit to the mid 90s, DTN Meteorologix Weather said.

 

Corn's price direction on Monday will depend upon the overnight weather forecasts on Sunday, a trader said.

 

On day session technical charts, electronically traded December remained above its 10-day moving average but below its 200-day moving average.

 

In open auction trading, JP Morgan bought 400 December and UBS sold 1,700 December.

 

In options trading, ADM Investor Services bought 4,000 December US$3.00 puts.

 

Oat futures finished mixed in light, two-sided activity, a commission house analyst said.

 

July oat futures went off the board at US$2.75 per bushel, down 15 cents; September slipped 1 cent to US$2.69 per bushel; and December gained 1/2 cent to US$2.73 3/4.