December 27, 2007

CBOT Corn Outlook on Thursday: Steady-firm following e-CBOT trade

Chicago Board of Trade corn futures are seen starting Thursday's day-session slightly firmer, following mild overnight gains.

Most-active CBOT March corn is called to open 1-2 cents firmer.

In e-CBOT overnight trade, March corn rose 1/4 cent to US$4.52 1/2 a bushel.

Follow-through buying after Wednesday's rally to contract highs could give corn a lift going into pit-trade, but the market is likely to watch the activity in soybeans, which are currently called to open slightly weaker.

A technical analyst said after moving to US$4.55 on Wednesday, the next upside target is US$4.60. On the downside, first support comes in at Wednesday's low and a gap top at US$4.47.

Fundamental news for corn is thin going into the last few trading days of the year, so the market will seek direction from outside influences, analysts said. Gold and crude oil are firmer, up a bit on news that former Pakistani prime minister and opposition leader Benazir Bhutto was killed in an apparent suicide bombing attack after a political rally, throwing that country's political system into further turmoil.

Further, traders said if the speculative buying that has support corn in recent days returns, the market will likely rally.

Corn traders are keeping an eye on the weather forecasts for Argentina, which has struggled with dryness during the corn crop's development. The near-term forecast is for mostly dry conditions, with some thundershowers possible in northern Sante Fe and in Entre Rios. Temperatures average near to above normal today and Friday, above normal Saturday, said DTN Meteorlogix. What the market is particularly interested in is the long-range forecast, which could see the return hotter, drier weather.