October 5, 2007

 

CBOT Corn Review on Thursday: Down; lacks fresh news; wheat losses lead

 

 

Chicago Board of Trade corn futures ended with modest losses Thursday, consolidating on the lack of fresh news with lower wheat futures pressing the market near the close, analysts said.

 

December corn fell 2 1/4 cents to US$3.42 1/4 per bushel, with March down 2 cents to US$3.59.

 

Corn consolidated Thursday after recent price declines and in the absence of news, said Joe Bedore, floor manager at FC Stone.

 

The decline in nearby wheat futures helped limit the upside, with the lack of speculative buying interest also keeping prices within a relatively narrow day-session trading range, an E-CBOT trader said. December wheat settled 21 cents lower at US$9.06 per bushel.

 

The market is waiting on a catalyst and it might be from Informa Economics production estimate due out Friday, said Bedore.

 

Weekly export sales were released ahead of the opening and were 1.151 million metric tonnes for the week ended Sept. 27, which was within the range of analyst estimates and had little impact, the E-CBOT trader said.

 

A midday rally in soybeans helped provide light support for corn but the sharp slump in wheat prices late in the session helped keep corn on the defensive into the close, a commission house analyst said.

 

The market's tone Friday will be set by the unemployment report as well as what wheat futures do in overnight trading, a trader said.

 

On daily technical charts, electronically traded December corn remained below its major moving averages.

 

In open auction trading ADM bought 500 December and JP Morgan also bought 500 December.

 

In options trading Tenco bought 2,000 December US$3.60 calls and sold 4,000 December US$3.20 puts.

 

Oat futures settled lower as screen-based selling pressed the market, a commission house analyst said. Stats Canada's oat production estimate was a bit supportive, but the reality is that Canada is going to have a big crop, the analyst said.

 

December oats ended 5 1/4 cents lower at US$2.74 1/4 per bushel.

 

Ethanol futures ended mixed in very thin trade. November ethanol settled .002 higher at US$1.572 per gallon and December fell .002 cent to US$1.573.