ODJ CBOT Corn Outlook: Corn Seen Following Wheat To Firmer Levels
By Tanner Ehmke
Chicago, Dec. 17 (OsterDowJones) - Chicago Board of Trade corn futures
are expected to open steady to 1/2 cent a bushel higher Wednesday, in tandem
with the wheat market which is expected to climb higher on fresh sales to
Egypt.
"We'll probably gain a little strength from the wheat," a CBOT grain
trader said.
Otherwise, overall fundamental news to move the market was considered thin
and scarce. Carryover selling from Tuesday's session and the large commission
house long position could limit upside momentum.
On Tuesday, prices settled lower in dull trading as corn followed
soybeans to lower levels into the close after spending the day on the
defensive. The heavy fund long position of 116,568 tallied last week should
also help keep a lid on any rallies, sources said.
In other news, the price of corn in China made another advance after
Beijing raised rail transportation charges for some goods earlier this
week due to a tight transit picture. Higher transportation costs have raised
corn prices at a time when exporters are struggling to move more corn to
ports.
Thailand has approved 54,700 metric tons of corn imports and unlimited
soymeal imports for 2004, the government said Wednesday. The corn imports
will be subject to a 20% tariff.
Weather-wise, extreme northern regions of Argentina had decent showers
Tuesday, dumping 1.50 to 4.75 inches. Clear skies and pleasant temperatures
arrived by midday, Global Weather Services reported. Forecasts call for
mostly dry weather for Argentina through the weekend, with the north seeing
scattered showers. The dry weather will permit farmers there to continue
planting the new corn crop, which is more than two-thirds complete. The main
crop belt will have a chance for light, scattered showers Sunday with
precipitation expected to be less than 0.35 to 1.50 inches.
By Tanner Ehmke
Chicago, Dec. 17 (OsterDowJones) - Chicago Board of Trade corn futures
are expected to open steady to 1/2 cent a bushel higher Wednesday, in tandem
with the wheat market which is expected to climb higher on fresh sales to
Egypt.
"We'll probably gain a little strength from the wheat," a CBOT grain
trader said.
Otherwise, overall fundamental news to move the market was considered thin
and scarce. Carryover selling from Tuesday's session and the large commission
house long position could limit upside momentum.
On Tuesday, prices settled lower in dull trading as corn followed
soybeans to lower levels into the close after spending the day on the
defensive. The heavy fund long position of 116,568 tallied last week should
also help keep a lid on any rallies, sources said.
In other news, the price of corn in China made another advance after
Beijing raised rail transportation charges for some goods earlier this
week due to a tight transit picture. Higher transportation costs have raised
corn prices at a time when exporters are struggling to move more corn to
ports.
Thailand has approved 54,700 metric tons of corn imports and unlimited
soymeal imports for 2004, the government said Wednesday. The corn imports
will be subject to a 20% tariff.
Weather-wise, extreme northern regions of Argentina had decent showers
Tuesday, dumping 1.50 to 4.75 inches. Clear skies and pleasant temperatures
arrived by midday, Global Weather Services reported. Forecasts call for
mostly dry weather for Argentina through the weekend, with the north seeing
scattered showers. The dry weather will permit farmers there to continue
planting the new corn crop, which is more than two-thirds complete. The main
crop belt will have a chance for light, scattered showers Sunday with
precipitation expected to be less than 0.35 to 1.50 inches.
