November 29, 2005

 

CBOT Corn Review on Monday: New lows set, ignores late soy rally

 

 

Corn futures at the Chicago Board of Trade ended lower Monday, scoring new life-of-contract lows in the nearby months once again as early spillover selling from the soy complex and the lack of positive news combined to limit buying interest, sources said. A late rally in the soy complex had little impact.

 

December corn fell 2 cents to US$1.87 3/4 per bushel, March corn dropped 1 cent to US$2.01 3/4, and May corn lost 3/4 cent to US$2.10 1/2 per bushel. All three months made new life-of-contract lows.

 

It was a negative news day, a commission house broker said. There was no positive news out Monday to rally corn, he added.

 

Continued concerns about the impact of Asian bird flu in China might have on soybean and soy meal demand pushed soybeans lower on the opening, with the negative sentiment spilling over into corn early on, with soybean futures slipping to levels not seen since early this year.

 

An attempt to rally corn after the opening fizzled as commodity fund selling emerged and pressured prices, floor sources said.

 

Rainfall over the weekend in corn-producing regions of Argentina also exerted pressure, as did weaker-than-expected export inspections.

 

The U.S. Department of Agriculture reported 27.780 million bushels of corn were inspected for export, below the 29-34 million expected by analysts

 

A late rally in soybeans on ideas that the market was oversold and due for a correction had little effect on corn with prices remaining under pressure as it continues its search for a bottom, a floor trader said.

 

Buyers on Monday included Refco buying 1,000 December and 600 March, ABN Amro buying 700 March, Man Financial buying 1,000 March, Tenco purchasing 1,500 December, and Fimat buying 500 December.

 

Sellers Monday included ADM selling 600 December, Citigroup selling 600 December and 600 March, Fimat selling 1,300 December, Man Financial selling 1,000 December and 100 March, and R.J. O'Brien selling 500 December.

 

Commodity fund selling was estimated at 3,600 contracts.

 

In spread trading, Fimat was noted spreading 2,000 December-March, ADM spread 1,000 December-March and Tenco spread 1,000 December-March.

 

Oat futures settled higher, shrugging off early losses to finish higher as technical buying underpinned prices, sources said. The March contract gained 3 1/2 cents to US$1.88 1/4.

 

Ethanol futures finished mixed. The January contract settled 2 cents lower at US$1.86 1/2 cents per gallon.

 

The CFTC commitment of traders report, usually released on Fridays, is scheduled for release Monday afternoon due to the Thanksgiving Day holiday, according to the CFTC's Web site.