October 24, 2007

 

CBOT Corn Review on Tuesday: Lower; weak wheat, lack of fresh news weigh

 

 

Chicago Board of Trade corn futures settled lower Tuesday, undermined by steep losses posted in wheat futures and the absence of fresh news, analysts said.

 

December corn declined 3 1/2 cents to US$3.61 per bushel.

 

Nearby wheat futures settled limit down, 30 cents lower, and corn was under pressure on spillover as a result, said Jason Britt, a broker/analyst at Central States Commodities in Kansas City. December wheat settled 30 cents lower at US$8.41.

 

Weakness in crude oil futures also limited upside interest despite a decline in the U.S. dollar, a trader said. The recent decline in the dollar has been supportive to commodities in general but did not help corn Tuesday, the trader said.

 

The U.S. corn crop is entering the last push of harvest activity and the market encountered some hedge-related pressure, said Britt.

 

On Monday afternoon, the U.S. Department of Agriculture reported that 60% of the U.S. corn harvest was complete as of Oct. 21, within analysts expectations and above last year's as well as the five-year average.

 

Financial markets in general are still nervous after recent volatility and that probably contributed to the lack of interest in commodities, said Britt.

 

The direction of the wheat and crude oil markets along with the value of the U.S. dollar will influence corn prices on Wednesday, a trader said.

 

On daily technical charts, electronically traded December corn ended above most of its major moving averages with the exception of its 200-day moving average.

 

In options trading, Rand bought 2,500 December US$4.10 calls.

 

Oat futures ended with small-scale losses, pressed by light liquidation and selling of the December-March spread, a trader said.

 

December oats settled 1 1/4 cents lower at US$2.78 1/4 per bushel.

 

Ethanol futures ended slightly higher. November ethanol gained 1 cent to US$1.70 per gallon and December rose .007 cent to US$1.685.