December 2, 2008
CBOT Corn Outlook on Tuesday: Up 1-2 cents; outside markets lend support
Corn futures on the Chicago Board of Trade are expected to start Tuesday's day session higher, continuing the overnight theme amid borrowed support from higher outside market influences.
Analysts expect corn to open 1 cent to 2 cents higher.
In overnight electronic trading, December corn was 1/4 cent higher at US$3.33, and March corn was 1/4 cent higher at US$3.49.
The market is poised for a modest technical recovery from Monday's sharp declines, with the absence of fresh fundamental news keeping attention focused on outside markets, analysts said.
Equity markets and crude-oil futures are pointing higher in early trade, and the U.S. dollar is lower, opening the door for a modest ounce in prices, analysts add.
Otherwise, futures have little influence to push prices aggressively in either direction, opening the door for a consolidative theme.
A technical analyst said corn prices are still trading below a five-month-old down-trend line on the daily bar chart. The next downside price objective for March corn is to push and close prices below solid technical support at US$3.25. The next upside price objective is to push and close prices above solid technical resistance at last week's high of US$3.77 3/4.
First resistance for March corn is seen at US$3.50 and then at US$3.55. First support is seen at Monday's contract low of US$3.45 and then at US$3.40. The DTN Meteorlogix weather forecast said rain and storms in Argentina late last week and early in the weekend greatly improved soil moisture, but it looks to be drier again during the next week or so.
The U.S. Department of Agriculture announced Tuesday private export sales of 330,000 metric tonnes of U.S. corn for delivery to Mexico. Of that total, 210,000 tonnes are for delivery in the 2008-09 marketing year and 120,000 tonnes are for delivery in the 2009-10 marketing year.
December corn deliveries totaled 1,850 lots. Issuers and stoppers were scattered among various commission houses. The last trade date assigned was Nov. 26.
South Africa exported 30,416 metric tonnes of white corn last week, compared with 25,244 tonnes the week before, data from the South African Grain Information Service showed Tuesday. Yellow corn exports rose to 2,096 tonnes from 1,965 tonnes previously, Sagis said.