August 21, 2009

 

CBOT Corn Review on Thursday: Modest losses in quiet trade; weather ideal

 

 

Corn futures at the Chicago Board of Trade closed weaker and near mid-range in quieter trading Thursday. Weather conditions in the Corn Belt remain ideal for maturing the corn crop down the stretch. This is the main bearish fundamental factor in the corn futures market at present, said Brian Hoops, president of Midwest Market Solutions.

 

December corn closed down 3 1/2 cents a bushel at US$3.24. September corn closed down 1 1/2 cents at US$3.18 1/2.

 

Commodity funds sold an estimated 4,000 corn contracts, according to CBOT floor reports.

 

Late-season growing weather in the Corn Belt is "perfect" for the corn crop, said Hoops. He said the extended forecasts calling for warmer temperatures in the Corn Belt are just what the doctor ordered for a corn crop that is generally behind in its maturity pace.

 

The National Weather Service forecast for Aug. 25-29 calls for below-normal precipitation across the western Corn Belt and into Illinois. Above-normal temperatures are expected across the West, the Dakotas and into Nebraska and western Minnesota, while cooler temperatures are expected in Indiana eastward.

 

The weekly USDA export sales report on Thursday morning showed strong corn sales of 577,000 metric tonnes in the 2008-09 marketing year, with 858,500 metric tonnes of corn sold for the 2009-10 marketing year. Traders expected the report to show corn sales of 700,000 to 1,000,000 metric tonnes. The strong weekly sales data did limit the downside pressure in corn futures Thursday, said another analyst.

 

Corn traders will continue to keep a close eye on the crude oil market, said Hoops. He said any bigger price moves in the crude oil will have a corresponding price influence on corn.

 

The Pro Farmer Midwest Crop Tour on Thursday saw the eastern leg of the tour take samples in eastern Iowa, while the western leg scouts started in western Iowa. Both routes meet for their final meeting in Austin, Minn., with final tour results from Iowa and Minnesota released Thursday evening.

 

September grain futures options expire at the close on Friday, Aug. 21.

 

By Jim Wyckoff, contributing to Dow Jones Newswires.