November 18, 2006

 

CBOT Corn Review on Friday: Rebounds, ends at session highs

 

 

Chicago Board of Trade corn futures ended higher Friday, recovering from early losses as late speculative buying propelled prices to session highs on the close.

 

December corn ended 3 3/4 cents higher at US$3.55 1/4 cents per bushel, and March gained 4 1/2 cents to US$3.70 1/2. The market managed to find its footing down the stretch, closing firmly after selling interest failed to extend losses in late dealings, analysts said.

 

Sellers remained cautious over the course of the day, as traders remain hesitant to aggressively press prices following recent declines amid the market's bullish underlying fundamental theme, said Shawn McCambridge, senior grains analyst with Prudential Financial in Chicago.

 

The early declines were attributed to light profit- taking action ahead of next week's holiday-shortened week, as the absence of any real feature in Friday's trade did not warrant anything more than some traders evening up positions, a CBOT floor analyst said.

 

Technical pressure added to the midday declines, but with good support resting beneath the market, downside movement was limited, with nervous shorts running for cover down the stretch, added McCambridge.

 

Rumors of a large hedge fund liquidating positions in commodities generated light concerns, but wire reports stating the rumors were unfounded alleviated the worries.

 

Otherwise, a quiet news front kept activity subdued, with prices chopping around on both sides of unchanged levels in early trade. Lower midday price action was consistent until the late buying surfaced to easily push values higher in relatively thin trade, a CBOT floor trader added.

 

In pit trades, Rand Financial bought 800 December and 500 July; JP Morgan bought 500 July; and Iowa Grain bought 300 July. Rosenthal sold 1,200 July; Fortis sold 600 December; Tenco sold 500 July; UBS Securities sold 500 December; and Fimat sold 300 July.

 

Ethanol futures moved lower Friday. The December ethanol contract settled 3 1/2 cents lower at US$2.085 per gallon.

 

Oat futures ended higher Friday, rallying to session highs on the close. Speculative fund buying, coupled with spillover strength from other grains lifted prices heading toward the close, analysts said.

 

December oats ended 4 3/4 cents higher at US$2.56 1/4 and March oats ended 4 cents higher at US$2.68 per bushel.