July 19, 2006

 

CBOT Corn Outlook on Wednesday: Down on milder weather - analysts

 

Corn futures are expected to begin pit trading 2-4 cents lower Wednesday in line with the overnight session as cooler temperatures and chances of precipitation mark the weather forecast.

 

In the overnight e-CBOT corn trade, September futures fell 3 3/4 cents to US$2.42 3/4 per bushel, and December lost 3 cents at US$2.59 1/2.

 

Corn may follow lower outside markets, an analyst said.

 

Another analyst noted the possibility of continued fund liquidation. On Tuesday commodity funds sold an estimated 10,000 contracts.

 

In the western Midwest, hot and mostly dry weather is forecast to stress reproductive corn and soybeans through Thursday, followed by cooler temperatures and a possibility of some scattered showers Friday and Saturday in a continuing drier and warm to hot weather pattern, DTN Meteorlogix reported.

 

In the 6-10 day outlook, temperatures are expected to average above normal, and possibly well above normal with precipitation near to below normal, DTN Meteorlogix said.

 

Weather in the eastern Midwest is expected to be hot Wednesday and Thursday, with cooler temperatures forecast for the weekend, DTN Meteorlogix said. Thunderstorm activity is possible in the northern and southern sections of the region.

 

The 6-10 day forecast for the western Midwest calls for temperatures average to above normal and rain near to below normal, according to DTN Meteorlogix.

 

On the technical charts, Tuesday's low close combined with some near term chart damage suggests a market top, a technical analyst said. First resistance for December corn is seen at US$2.65 and then at US$2.68 1/2--Tuesday's high. First support is seen at US$2.60--Tuesday's low--and then at US$2.57 1/2.

 

Cash basis bids are mixed Wednesday morning. Central Illinois Central Illinois is 10 cents under September.

In other corn news, corn futures settled lower on China's Dalian Commodities Exchange. The March 2007 contract settled at RMB1,421/tonne, down RMB4.

 

Cash basis bids are mixed Wednesday morning. Central Illinois Central Illinois is 10 cents under September.