September 15, 2006

 

CBOT Corn Review on Thursday: Slightly lower in dull trade

 

 

Chicago Board of Trade corn futures ended with thin losses Thursday, as the market was unable to generate any momentum in either direction and remained in its recent role following other markets, sources said.

 

September corn went off the board at US$2.23 per bushel. December slipped 1/2 cent to US$2.37 1/4 cents per bushel, and March fell 1 cent to US$2.51 1/4. e-CBOT day session volume in December was 31,356 contracts.

 

"All in all, it was a pretty dull day," a commission house analyst said.

 

The metals and energy markets were lower again, and wheat pressed corn after mid-session, reversing early gains based on overnight strength, a floor analyst said.

 

A firm tonnee in soybeans near the close did provide some support to prices but corn continues to look for direction after the recent production and supply-demand reports, the analyst added.

 

Weaker than expected export sales added to the lack of interest, a floor trader said. The USDA reported weekly corn export sales were 669,900 metric tonnes, well below the 850,000 - 1.0 million metric tonnes expected.

 

Light unwinding of corn-wheat spreads by Tenco and JP Morgan added to the weak tonnee, sources said.

 

However, the downside remained limited by continued firm cash prices and some concerns that next weeks colder and wetter weather forecasts could impact the harvest, they said.

 

On technical charts, December finished below its major moving averages and settled at its lowest price since mid-August.

 

Buyers Thursday included FC Stonnee, which bought 600 December, Fimat, which bought 500 December, JP Morgan, which bought 800 December, and Iowa Grain, which bought 300 December.

 

JP Morgan sold 1,000 December and 1,000 July, Tenco sold 1,000 December, and Fimat sold 600 December and 500 December 2007.

 

Commodity fund buying was estimated at 600 contracts.

 

In option trades, Tenco bought 2,000 December US$2.50 calls.

 

Oat futures settled higher in light trade as fund buying continues to underpin the market, a floor broker said.

 

December oats gapped open higher on open auction technical charts and the technical picture remains positive, a floor source said.

 

September oats settled 2 1/2 cents higher at US$1.90 1/2 per bushel and December gained 3 cents to US$1.99 3/4.

 

Ethanol futures ended mixed in light trade. October ethanol settled 1 cent lower at 1.86 per gallon. November also declined 1 cent to US$1.85.

 

Friday afternoon, the Commodity Futures Trading Commission is scheduled to release the commitment of traders report for the period ending Sept. 12.