DJ CBOT Corn Outlook:2-3c Higher, Following Soybeans 01/30/2006 -- 08:58
CHICAGO (Dow Jones)--Corn futures at the Chicago Board of Trade are expected to begin open auction trading 2-3 cents higher Monday, following the firm tone in soybeans and the gains corn posted in overnight trade, floor sources said.
In overnight e-CBOT trading, March corn gained 2 3/4 cents to $2.21 1/2 per bushel, May corn rose 2 1/2 cents to $2.31 and July corn gained 2 1/2 cents to $2.40.
Corn will follow the beans higher to start, a floor source said. The weather was warm and dry over the weekend in Argentina and southern Brazil and the forecast is for dry weather over the next several days with soybeans called sharply higher, he added.
In addition, the technical outlook in corn is positive with the market moving through several levels of near term resistance last week and finishing at the high for the week on Friday, he added.
The funds have the market on the run, a commission house analyst said. They were big buyers last week and could push the market higher this morning as well, he said.
Hot and dry weather occurred over the weekend in Argentina, with the chance of any thundershower activity during the next five days somewhat uncertain, DTN Meteorlogix weather said.
Cash corn basis bids were mostly unchanged to lower Monday morning. Central Illinois was unchanged at 3 cents over the March; with St. Louis unchanged at 4 cents over the March future.
On technical charts, prices hit a fresh three-week high on Friday and settled at the weekly high close, with the bulls having some fresh near-term technical momentum, a technical analyst said. He sees first resistance for March corn at $2.21, the January high and then at $2.25. First support is pegged at $2.16 3/4, Friday's low and then at $2.15.
The Commodity Futures Trading Commission reported Friday that large non-commercial speculators were net short 5,913 contracts as of Jan. 24.
According to preliminary volume and open interest figures released by the CBOT, corn open interest set another record on Friday, with open interest at 939,404 contracts, up 28,853 contracts.
In China, the Dalian futures exchange is closed this week due to the Lunar New Year holiday. Trading will resume on Feb. 6.
Monday morning the U.S. Department of Agriculture is scheduled to release the weekly export inspections report at 10:00 a.m. CST.
