December 23, 2005

 

CBOT Corn Review on Thursday: Near session highs on late buying

 

 

Corn futures traded at the Chicago Board of Trade settled at higher levels Thursday, benefiting from local and fund buying late and making new highs in an otherwise lackluster session, sources said.

 

March corn gained 2 3/4 cents to US$2.12 3/4 per bushel, its highest close since Oct. 25. May settled 2 1/2 cents higher to US$2.21 1/2 and July corn rose 2 cents higher to US$2.29 3/4 cents per bushel.

 

The market opened higher, remaining above US$2.10 as stronger soybean futures overnight helped provide thin support, sources said.

 

Futures consolidated at modestly higher levels for much of the session as pre-holiday trading conditions took hold with price activity choppy and within thin ranges.

 

Late in the session light local buying helped push March futures through resistance at US$2.12, with fund buying helping to propel March to its highest close since late October.

 

The U.S. Department of Agriculture reported weekly export sales at 885,500 metric tonnes for the week ended Dec. 15. Although the figure was above analysts' expectations, the news had little impact.

 

On technical charts, March futures created a gap between Wednesday's high of US$2.10 1/4 and Thursday's low of US$2.10 1/2.

 

Buyers on Thursday included UBS buying 2,000 March, Calyon Financial buying 1,000 March, Man Financial buying 500 March, Prudential buying 300 March, and DT Trading buying 200 March.

 

Sellers Thursday included Cargill selling 300 March, Fimat selling 300 March, R.J. O'Brien selling 300 March and 100 July, and Rosenthal selling 100 March.

 

Commodity fund buying was estimated at 6,000 contracts.

 

Oat futures finished mostly lower with the March contract up 1 1/2 cents to US$1.94 per bushel.

 

Ethanol futures settled mostly higher. The most-active April contract did not trade and slipped 1/2 cent lower to US$1.97 1/2 per gallon.

 

On Friday, agricultural futures and options traded at the CBOT will close at 12:00 p.m. CST (1800 GMT) and the market will be closed Monday.