November 23, 2005

 

CBOT Corn Review on Tuesday: Unchanged in directionless trade

 

 

Corn futures at the Chicago Board of Trade finished Tuesday unchanged from Monday's settlement prices in modest pre-holiday trading. Market participants rolling out of their December positions and into March was once again the main feature, traders said.

 

December corn finished unchanged at US$1.91 1/2 per bushel; March corn ended flat at US$2.05 1/4; and May corn also ended even with Monday's settlement price at US$2.13 1/2.

 

"It's a typical holiday market, looking for direction and not really finding it," said Vic Lespinasse of A.G. Edwards & Sons. The main focus continues to be the rollover, he added.

 

Calyon Financial was noted spreading 4,000 December-March; Refco spread 1,500 December-March; O'Connor spread 3,000 December-March; and FC Stonnee spread 1,500 December-March.

 

On Wednesday, March will assume the lead contract month position, according to the CBOT.

 

Tuesday was the last trading day for December corn options, however with the futures within a thin price range options trading had no impact on futures, a floor analyst said.

 

Light spillover pressure from wheat futures late in the session added to the lack of buying interest in corn, sources said. December wheat fell 1 1/2 cents to US$2.97, after slipping to another new contract low of US$2.95 1/4.

 

News of a sale of 120,000 metric tonnes of U.S. corn to Egypt was termed "routine business" by one commission house broker, who noted that demand for corn remains firm, but not strong enough to impact prices.

 

Buyers on Tuesday included ABN Amro buying 300 December; Calyon Financial buying 300 December; Goldenberg Hehmeyer buying 500 March; and Refco buying 100 March.

 

Sellers Tuesday included Rand Financial selling 1,000 December; Shatkin selling 1,200 December; Fimat selling 500 March and 300 December; Cargill selling 200 March; and Goldenberg Hehmeyer selling 300 March.

 

Commodity funds sold an estimated 1,200 contracts.

 

Oat futures finished higher with the December contract ending at its highest level since the summer on technical and fund buying, a floor trader said. December oats rallied 5 1/4 cents to US$1.75 3/4 per bushel.

 

Ethanol futures settled mixed. The January contract rose 1 cent to US$1.90 per gallon.