July 26, 2007

 

CBOT Corn Review on Wednesday: Trims gains near close on weak soy, wheat

 

 

Chicago Board of Trade corn futures ended mixed Wednesday as prices pulled back near the close on late weakness in soybean and wheat prices, an analyst said.

 

September corn ended unchanged at US$3.11 1/2 per bushel, December closed 1/2 cent higher at US$3.27 1/4, and March settled up 1/2 cent at US$3.42 1/2.

 

Most of the day session's trading was spent at higher levels as the market was seen as due for a bounce from recent declines. However, the market failed to hold those advances on late weakness from soybeans and wheat, analysts said.

 

"We should look for some rebound here until we are sure that the crop is made," said Sid Love, analyst with Kropf and Love Consulting. December corn has declined nearly US$1 since June 18, and seems to have hit a bottom at recent lows, traders said. Both Tuesday's and Wednesday's daily December lows were US$3.26 1/4.

 

Also, anticipation of strong U.S. export figures to be released Thursday added support during Wednesday's session, analysts said. The lower corn price levels are seen making U.S. exports more competitive with other countries, Love said.

 

On Thursday, the U.S. Department of Agriculture is scheduled to release the weekly export sales report for the week ended July 19. Analysts anticipate commitments falling in a range of 800,000 to 1.2 million metric tonnes.

 

A lack of fresh fundamental news in the corn market caused a light volume day, traders said.

 

Midday weather forecasts added moisture in the Midwest this week, but did little to move the market at midday because of already low levels, Love said. The corn crop is thought to be mostly through its pollination stage, with some crops in the northwestern corn belt still vulnerable to adverse weather, analysts said.

 

Besides the increased moisture in the Midwest Thursday through Saturday, the midday weather report remained mostly unchanged from overnight forecasts with average temperatures through the week followed by warmer conditions in the long-term, a floor manager said.

 

In open auction trading, Tenco bought 1,200 September and Fimat sold 500 December.

 

In options trading, FC Stonnee bought 1,000 September US$3.00 puts and Man Financial bought 1,000 September US$3.50 calls. RJ O'Brien sold 2,000 December US$3.50 calls and Rand Financial sold 1,000 December US$3.00 puts.

 

Commodity fund buying was estimated at 3,000 contracts.

 

CBOT oat futures settled unchanged to higher Wednesday on a slow trading day after little commercial selling was found to offset speculative buying, a trader said.

 

Sep oats ended unchanged at US$2.51 per bushel, and Dec settled up 1 cent at US$2.58 3/4.

 

Ethanol futures finished lower in light trade. August ethanol settled 3 cents higher at US$1.970 per gallon and September ended 2.6 cents higher at US$1.886.