Petroleum industry

Corn Futures Expected to Open Higher Amid Outside Market Ties to Ethanol

Strategic Insights

Mar 9, 2009 — 1 min read

Chicago Board of Trade corn futures are forecasted to open with gains Tuesday, driven primarily by developments in outside markets, traders explained. The price projections for corn futures vary between 3 to 5 cents higher. Observers note that the ties between crude oil and corn, both being connected to ethanol, are contributing to the upward momentum. Furthermore, the weakening dollar is also seen as a supporting factor.

Key Takeaways:

Corn futures are expected to open higher by 3 to 5 cents due to outside market influences.
Continued strength in crude oil prices is boosting corn futures due to their shared connection to ethanol.
The weakening dollar is also contributing to the upward momentum in corn futures.
Some traders express concerns about excessive rains in the corn belt and potential delays to planting, but consider it too early to be concerned.
Farm Futures reported major flooding along some areas of the Illinois River, which may impact planting.
Wednesday's supply and demand report is anticipated to show a slight increase in 2008-09 ending stocks, but is expected to be a non-event for corn.
US Agriculture Secretary Tom Vilsack's call for an increase in the ethanol blend rate beyond 10% has positively influenced the market.
The next downside price objective is to close May prices below the technical support at $3.44 1/2 a bushel.
The next upside price objective is to close prices above the technical resistance at the last reaction high of $3.80 1/2.

Statistics:

Corn futures are expected to open 3 to 5 cents higher.
Crude oil prices are contributing to the upward momentum in corn futures.
The dollar is weaker, supporting the upward momentum in corn futures.
1,160 deliveries were reported against the March contract Tuesday.
First resistance for May corn prices is seen at $3.70 and then at $3.75.
First support is seen at $3.60 and then at $3.55.

Sources:

Dow Jones Commodities News via Comtex
Dow Jones Newswires, 03-10-09 0933ET
Farm Futures
US Department of Agriculture (cited through comments from US Agriculture Secretary Tom Vilsack)

The End of American Hypergrowth

For two centuries, the US economy grew by adding workers. That's over.

Healthcare's $5.3 Trillion Drag

How Medical Spending Became America's Biggest Productivity Tax

Breakthrough in Nanotechnology: Electromagnetic Shock Treatment Shows Promise

Researchers at the Wuhan University of Technology in China have made significant progress in the field of nanotechnology, specifically in the area of nanoindentation. A novel electromagnetic shock treatment (EST) method has been developed to enhance the microscale mechanical properties of a titanium alloy, with promising results obtained through array-based

Gut Microbiota Plays Crucial Role in Immunotherapy Success for Colon Cancer Patients

Research investigators at the Zhengzhou Central Hospital Affiliated to Zhengzhou University have made groundbreaking discoveries on the role of gut microbiota in determining the efficacy of immunotherapy for colon cancer patients. The study, which was recently published in Biochimica et Biophysica Acta, reveals that specific bacterial species and microbial metabolites

Read more

The End of American Hypergrowth

Healthcare's $5.3 Trillion Drag

Breakthrough in Nanotechnology: Electromagnetic Shock Treatment Shows Promise

Gut Microbiota Plays Crucial Role in Immunotherapy Success for Colon Cancer Patients