December 17, 2005

 

CBOT Corn Review on Friday: Higher on early fund-related buying

 

 

Corn futures traded at the Chicago Board of Trade finished Friday at higher levels as early fund-related buying and spillover support form stronger soybean futures early in the session underpinned prices, traders said.

 

March corn rose 2 3/4 cents to US$2.07 1/2 per bushel, May gained 2 1/4 cents to US$2.16 1/4, and July also settled 2 3/4 cents higher at US$2.25 1/4 per bushel.

 

The market ran up to the upper end of its recent trading range Friday morning, but there was no follow through and people took some of their profits, a floor analyst said.

 

Early in the session, corn rallied on fund buying and spillover strength from soybeans and soy meal after those markets were higher in overnight trade. Traders noted scattered talk that a weather model had reduced the chance of rain in parts of South America next week, providing support.

 

There was no real news out Friday, the funds came in and bought, and there was spillover support from soybeans at the start, but there was no other buying interest, a broker said.

 

Commodity fund buying was estimated at 6,000 contracts.

 

Buyers on Friday included Calyon Financial buying 1,500 March, Deutsche Bank buying 1,000 December, O'Connor buying 1,000 December, FC Stonnee buying 800 March, the RIS division of Man Financial buying 500 March, and Tenco buying 200 March.

 

Sellers Friday included Cargill selling 1,000 March, Tenco selling 1,000 March, Fimat selling 200 March, and FC Stonnee selling 200 July.

 

Oat futures settled lower in the nearby months as follow-through selling after Thursday's steep declines pressed prices lower, sources said. The March contract declined 3 1/2 cents to US$1.84 per bushel.

 

Ethanol futures ended mixed. The most-active April contract did not trade but settled 1/2 cent lower at US$1.97 per gallon.

 

Friday afternoon the Commodity Futures Trading Commission is scheduled to release the latest Commitment of Traders report at 2:30 p.m. CST (2030 GMT).

 

On Monday, the U.S. Department of Agriculture is scheduled to release the weekly export inspections report at 10 a.m. CST (1600 GMT).