March 19, 2010

 

CBOT Corn Review on Thursday: Higher on fund-buying; dollar limits gain

 

 

Chicago Board of Trade corn shook off bearish strength in the dollar and weaker crude oil Thursday, ending higher amid fund-buying.

 

May corn was up 2 cents, to US$3.76 per bushel, and July corn was up 1 3/4 cents, to US$3.87.

 

Prices had been lower for much of the session but rebounded late. Mike Zuzolo, president of Global Commodity Analytics and Consulting, said there appeared to be index-fund buying boosting prices. Funds were sellers much of the session but had bought an estimated 2,000 contracts by the close.

 

Zuzolo added that export sales were generally better than expected for the grains.

 

Wet Midwest conditions continue to underpin the market, stoking fears of late planting. Some traders say it is too early to be worried about planting, which typically wouldn't start until April in most areas.

 

"There are some concerns about the weather, wet conditions, so on and so forth, but we still have plenty of time before we really need to get active," McCambridge said.

 

McCambridge and others expect the market to remain rangebound and choppy, although the market is gaining some upside technical momentum.

 

The stronger dollar and weaker crude oil limited corn's gains Thursday. Soybeans ended mixed on the day and wheat was lower.

 

In international news, Argentina's Agriculture Ministry narrowed its forecast for corn production to 20.5 million tonnes, compared to the 19 million to 21 million forecast last month.

 

Argentina is the world's third largest corn exporter.

 

The ministry also made its first forecast for 2009-10 soybean production on Thursday, pegging output at between 51 million and 55 million metric tonnes.

 

That will beat by a wide margin the previous record set in 2006-07 of 48.8 million tonnes.

 

CBOT oats traded a tight range Thursday and ended up slightly. May oats ended up 1/2 cent, to US$2.25 1/2 per bushel and July oats climbed 1/2 cent, to US$2.34.

 

Ethanol futures were lower. April ethanol ended down US$0.012, to US$1.578 per gallon and May ethanol closed down US$0.010, to US$1.611.