November 28, 2006
 
CBOT Corn Review on Monday: Higher after choppy session

 

 

Chicago Board of Trade corn futures finished higher Monday in choppy, two-sided trading.

 

December corn rose 2 1/4 cents to US$3.71 1/2 per bushel and March also rose 2 1/4 cents, to US$3.88 1/4. e-CBOT day session volume in March was 72,315 contracts.

 

Follow through from stronger prices in overnight trade and spillover from higher energy and metals prices provided support early, sources said.

 

Fund buying contributed to the upward move with the nearby months setting new life-of-contract highs, they added.

 

The lack of additional fund buying, a retreat to lower levels in wheat and a sell-off in soybeans at midday from moderate gains established earlier helped pressure corn.

 

March wheat futures settled 5 cents lower at US$5.14.

 

Activity remained two-sided and choppy until near the close when buying interest surfaced to help support prices, sources said.

 

Speculative buyers continue to want to own corn, a commission house analyst said.

 

The only news during the session was export inspections and they "stunk," a floor trader said.

 

The U.S. Department of Agriculture reported that weekly corn inspections totaled 33.6 million bushels for the week ended Nov. 23, below analysts estimates of 37 million to 48 million and the 27.1 million inspected the previous week.

 

News that South Korea was culling over 235,000 birds after an outbreak of H5N1 Asian bird flu on a Korean poultry farm was confirmed over the weekend had little impact. An analyst noted that the news was out during the overnight session and ignored.

 

On daily open auction technical charts, March traded at its highest level since August 1996 on monthly continuation charts.

 

Buyers Monday included JP Morgan, which bought 2,000 December 2007 and 1,200 December; Merrill Lynch, which bought 1,100 December; Man Financial, which bought 1,200 December; and FC Stonnee, which bought 400 December and 200 July.

 

Calyon Financial sold 300 March; JP Morgan sold 600 December and 400 March; and RJ O'Brien sold 400 December.

 

Commodity fund buying was estimated at 6,000 contracts.

 

In spread trading JP Morgan bought 2,000 December-March.

 

In options trading, Man Financial bought 2,000 March US$3.80 puts, and sold 2,000 US$3.50 puts and 2,000 US$4.40 calls.

 

Oat futures settled higher, supported by light commercial-related buying in quiet activity, ignoring the weakness in wheat, a floor analyst said.

 

December oats settled 2 1/2 cents higher to US$2.60 per bushel and March rose 3 1/4 cents to US$2.74.

 

Ethanol futures settled mixed. The December contract did not trade and ended 2.2 cents higher per gallon at US$2.197 per gallon. The January contract also did not trade and ended up .002 cents at US$2.127.

 

The Commodity Futures Trading Commission is expected to release the weekly Commitments of Traders Report Monday afternoon. The report was delayed by the holiday.