July 16, 2009

 

CBOT Corn Review on Wednesday : Stumbles amid profit-Taking, good weather

 

 

Chicago Board of Trade corn futures ended lower Wednesday amid profit-taking and a bearish crop outlook, traders said.

 

September corn ended down nine cents, to US$3.29 1/2 per bushel, and December corn ended down eight cents, to US$3.37 1/2.

 

A modest short-covering rally that sent the market higher early in the session fizzled when the trade realized there was no fundamental news to support it, a floor analyst said.

 

"To me, looking at the charts, you cured it being oversold," a floor trader said of the modest gains to start the week. "And it's really tough this time of year to get anything going higher."

 

Soys led the market lower Wednesday, the trader said.

 

Wednesday's drop came despite supportive outside markets, including surging equities, climbing crude oil and a weaker dollar, which had buoyed corn in early trading. The lack of follow-through on the rally in corn sparked a round of profit-taking, the floor analyst said.

 

"In a light volume trade, it doesn't take much to move the market," he added.

 

Ideal crop-growing weather remains the market's key bearish influence, traders and analysts said. Cool conditions with ample rainfall are perfect for the crop as it enters its key pollination period, they said. Temperatures are expected to be moderate through the end of the month, which has fueled talk of potential record yields.

 

Cash prices, which had supported the market recently, also softened Wednesday.

 

Analysts note that export demand has picked up on the recent break in prices. But concerns persist about both the ethanol and feed sectors, they said.

 

CBOT oats futures ended lower. September oats were down 3/4 cent, to US$2.17 1/2 per bushel, and December oats settled down one cent, to US$2.29.

 

Ethanol futures were slightly higher. August ethanol was up US$0.011 to US$1.501 per gallon and September ethanol ended up US$0.001 to US$1.475.