December 30, 2005

 

CBOT Corn Review on Thursday: Skids lower late on weaker soy, wheat

 

 

Corn futures traded at the Chicago Board of Trade settled lower Thursday, ending a streak of eight straight higher closes, extending earlier losses late on profit taking, weaker soy and wheat values, sources said.

 

March corn fell 5 1/4 cents to US$2.11 per bushel, May corn dropped 5 cents to US$2.20, and July lost 4 1/2 cents to 2.28 1/2 per bushel.

 

"It was a role-reversal day," said Vic Lespinasse, an analyst with AG Edwards & Sons. Markets that were recently strong are weak and the funds that have been big buyers Wednesday were absent Thursday, he said.

 

The market backed off Thursday and the market was consolidating some of its recent gains, a floor source said. The losses were extended late on light fund selling and local profit taking ahead of the new year, he added.

 

Late declines posted in soybean and wheat futures added to the poor tonnee. March soybeans dropped 13 1/2 cents to US$6.08 3/4 per bushel with March wheat falling 8 1/4 cents at US$3.37 1/4.

 

Thursday's declines snapped a recent series of stronger prices dating back to mid-December, with March corn reaching 2 1/2-month highs Wednesday.

 

The relative strength index was indicating near overbought levels, the floor source said.

 

On technical charts, March corn fell below support near US$2.13, but remained above secondary support at US$2.10, analysts said.

 

Buyers on Thursday included Cargill buying 1,500 March, Fimat buying 700 March, O'Connor buying 300 March and 200 May, Rand buying 300 March, and Man Financial buying 100 May and 100 July.

 

Sellers Thursday included the RIS division of Man Financial selling 1,000 March, Shatkin selling 700 March, the Refco division of Man Financial selling 700 March, Calyon Financial selling 300 March, and FC Stonnee selling 500 March and 100 July.

 

Commodity fund selling was estimated at 2,300 contracts.

 

Oat futures settled lower with the March contract down 2 cents to US$1.95 1/2 per bushel.

 

Ethanol futures ended mixed. The most-active April contract did not trade and slipped 1 1/2 cents to US$2.00 per gallon.

 

On Friday, the U.S. Department of Agriculture is scheduled to release the weekly export sales report at 7:30 a.m. CST (1330 GMT). Analysts expect corn exports in a range between 550,000 and 800,000 metric tonnes.

 

The CBOT agricultural markets will close at noon CST Friday and will be closed Monday in observance of the New Year's holiday.