December 14, 2005

 

CBOT Corn Review on Tuesday: Higher on late soy complex surge

 

 

Corn futures at the Chicago Board of Trade finished higher Tuesday, shrugging off earlier losses based on consolidation after Monday's gains on late spillover strength from the soy complex, sources said.

 

December corn gained 1 1/4 cents to US$1.95 1/2 per bushel; March settled up 1 cent to US$2.08 3/4; and May also finished 1 cent higher at US$2.17 3/4 per bushel.

 

Corn traded within relatively tight ranges in a quiet session until light selling interest, thought to be fund related, pushed prices to their lows of the day after midsession, a commission house broker said.

 

The absence of additional selling, however, led traders to cover short positions established on the move to lower levels with the rebound accelerating on the sharp rally in soymeal and soybeans late, sources said.

 

January soybean meal jumped US$6.00 to US$194.00 per short tonne, with January soybeans settling 13 1/2 cents higher at US$5.97 1/2 per bushel.

 

News before the open that Informa Economics estimated the U.S. corn crop at 11.080 billion bushels, with a yield of 149.1 bushels per acre, had little market impact.

 

On technical charts, March remained above its 10-day and 20-day moving averages, but below its 50-day moving average of US$2.09 3/4.

 

Buyers on Tuesday included the RIS division of Man Financial buying 800 March; Rosenthal buying 1,000 March; ABN Amro buying 400 March; Tenco buying 600 March; and Fimat buying 400 March.

 

Sellers Tuesday included Calyon Financial selling 800 March; R.J. O'Brien selling 1,000 March; the Refco division of Man Financial selling 500 March; UBS selling 500 March; and Man Financial selling 300 March.

 

Commodity fund selling was estimated at 1,500 contracts.

 

Oat futures settled mixed, with the March future ending unchanged at US$2.05 per bushel.

 

Ethanol futures ended mostly lower. The most-active April contract declined 5 cents, settling at US$1.94 per gallon.