November 24, 2005

 

CBOT Corn Review on Wednesday: Modestly lower before holiday

 

 

Corn futures at the Chicago Board of Trade finished at slightly weaker levels Wednesday as the market continues to work its way lower in the absence of fresh, positive news, sources said. Most buyers remained on the sidelines ahead of the holiday, with new contract lows set in the top three months.

 

December corn slipped 3/4 cent to US$1.90 3/4 per bushel, March corn lost 1 cent to US$2.04 1/4, and May corn declined 1 cent to US$2.12 1/2 per bushel.

 

"Today was a repeat of the entire week," a floor trader said. The market came under light pressure from thin fund selling and rollover trading with buying interest continuing to be scale-down only. "I can't remember when someone paid up for corn and took out the offer," he added.

 

Weaker soybean prices added to the dull tonnee, with soybean futures settling with moderate losses, falling to levels not seen in more than six weeks in the January contract.

 

Despite generally strengthening basis levels over the past few weeks, corn futures continue to trade within tight ranges and edge lower. Concerns about demand for U.S. corn and the uncertainty of the effect bird flu might have on exports have added to price weakness after producers recently completed the harvest of what is expected to be the second-largest crop produced in the U.S.

 

Buyers on Wednesday included Cargill buying 100 December and 1,000 March, R.J. O'Brien buying 300 December and Goldenberg Hehmeyer buying 200 March.

 

Sellers Wednesday included Calyon Financial selling 500 March, O'Connor selling 500 March, R.J. O'Brien selling 500 December and Tenco selling 200 March.

 

Commodity funds sold an estimated 1,500 contracts.

 

Oat futures settled mixed with the March contact slipping 3/4 cent to US$1.81 1/2.

 

Ethanol futures ended mostly higher. The January contract, which did not trade, declined 1 1/2 cents to US$1.88 1/2 cents per gallon.

 

The CBOT will be closed Thursday in observance of Thanksgiving Day and will reopen on Friday with shortened trading hours, closing at noon CST (1800 GMT).

 

The U.S. Department of Agriculture is scheduled to release the weekly export sales on Friday at 7:30 a.m. CST (13:30 GMT). Analysts contacted by Dow Jones expect weekly exports between 800,000 and 1 million metric tonnes.