November 5, 2005

 

CBOT Corn Review on Friday: Slips late, sets new contract lows

 

 

Corn futures at the Chicago Board of Trade settled mostly lower Friday, with nearby futures slipping to new contract lows in late trade.

 

"There's no story in corn," a commission house broker said. It continues to consolidate at lower levels, he added.

 

December corn declined 3/4 cent to US$1.95 1/2 per bushel, March corn also slipped 3/4 cent to US$2.09 3/4, and May corn dropped 3/4 cent to US$2.17 3/4 per bushel. December, March and May all declined to new contract lows in late trade.

 

"When soybeans go up corn doesn't follow, when soybeans sell off, corn doesn't follow. It's stuck in a rut," the broker added.

 

Soybean futures settled moderately lower, as profit taking and ideas yesterday's gains were overdone pressured futures. The January contract fell 9 3/4 cents to US$5.92 per bushel.

 

Light fund selling in the absence of fresh news also limited the upside, sources said. Commodity fund selling was estimated at 3,800 contracts.

 

Corn futures remained within narrow ranges the entire week with the December contract trading within a 3 1/4 cent range.

 

"There's no commercial or producer selling right now," said Brian Hoops, president of Midwest Marketing in Yanktonne, South Dakota. The basis is beginning to narrow, but farmers aren't yet willing to sell, waiting for higher prices, he added.

 

Floor analysts noted the upcoming U.S. Department of Agriculture crop production and supply/demand reports due out next week as another limiting factor, with the market looking for the USDA to confirm several private production estimates that were released earlier in the week. The report is scheduled for release Thursday.

 

Buyers on Friday included ADM buying 100 December, Refco Investor Services buying 400 December, Fimat buying 100 December, R.J. O'Brien buying 200 July and December 100, Rand buying 100 December and Tenco buying 100 March.

 

Sellers Friday included Fimat selling 2,000 March and 100 December, R.J. O'Brien selling 2,000 December and Tenco selling 100 December.

 

Commodity fund selling was estimated at 3,800 contracts.

 

Oat futures ended mostly higher with the December contract up 1 1/2 cents to US$1.67 3/4 per bushel.

 

Ethanol futures settled unchanged to higher. The January contract didn't trade and settled unchanged at US$1.91 1/2 per gallon.

 

On Monday, the U.S. Department of Agriculture is scheduled to release the weekly export inspections report at 1000 a.m. CST (1600 GMT), and the weekly crop progress report at 1500 p.m. (2100 GMT).