CBOT Corn Review: End Weaker With Mar Leading Losses
-- Talk Of Tainted U.S. Corn Shipment To Japan Splits Market /By Debbie Carlson
Chicago, Dec. 27 (OsterDowJones) - Corn ended weaker Friday, with the nearby contracts leading the losses on light fund and local selling, and off market talk of a corn shipment to Japan said to be tainted with the Starlink genetically modified organism.
Very few details have emerged regarding the talk about the cargo of corn, but some traders said it appeared to have some impact on the market. "I'd say that's why corn was down today," one corn pit trader said.
However, several other market sources aren't so sure, saying that the weakness was tied to a correction after the recent gains in corn and an end to a spate of short-covering that supported corn earlier.
Mar corn ended down 3 at $2.39 3/4, and May corn settled down 2 3/4 c at $2.43.
"You know, we had a lot of wheat-corn spreading recently and soybean-corn spreading recently and when that unwound, it gave corn a boost. That's over now, and I think we're seeing the effects of that here. I really don't know about how much impact this Starlink news has," one veteran analyst said. "I would think we would be down harder."
Talk in the cash market says that one cargo of U.S. corn had trace amounts of Starlink, with some sources saying the shipment came out of the Gulf. Still, few solid details are known.
Those floor traders who are in the camp of the talk not affecting the market greatly note also that commercials were buyers and funds were net sellers. "Locals also ran sell stops, and that brought it down," one pit trader said.
In corn, ADM bought 200 Mar; FIMAT bought 300 July and 200 May; R.J. O'Brien 200 Mar; Rand bought 300 July. Sellers include Carr Futures selling 300 Mar; FIMAT selling 400 Mar; FIMAT selling 400 Mar; Man Financial selling 500 Mar; Rand selling 200 Mar; Salomon Smith Barney selling 400 Mar.
FC Stone spread 400 Mar-May; Man Financial spread 300 Mar-May and Cargill spread 200 Mar-May.
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