CHICAGO (Dow Jones)–U.S. corn futures are expected to open slightly lower
Friday on seasonal pressure and profit-taking ahead of the three-day holiday
weekend.
Chicago Board of Trade corn is called 1 to 2 cents lower. In overnight
trade, September corn was down 2 cents to $4.31 per bushel and December corn
was down 1 1/2 cents to $4.46.
While early U.S. yield reports have been disappointing for farmers, the
harvest typically pressures the market as more supplies enter the pipeline. The
harvest is a month ahead of last year’s pace in many places, analysts say.
“The seasonalities in corn are turning more negative in a quicker fashion,”
said Don Roose, president of U.S. Commodities in West Des Moines, Iowa.
Traders will take a cautious approach Friday heading into the extended Labor
Day weekend. The market will be closed on Monday, and traders will have fresh
information about the harvest to digest when trade resumes.
As of now, analysts say yields have been disappointing, and most expect the
crop to come in below the U.S. Department of Agriculture’s current estimate of
165 bushels per acre.
“Corn yields have to improve across (northern Iowa, Minnesota or Wisconsin)
or the market is in for a big supply shock,” AgResource Co. said in a morning
commentary. “Increasingly, the yield data argues that the 2010 U.S. corn yield
will not surpass 160 BPA.”
Traders Friday will be awaiting release of a private analytical firm’s crop
projections, which are expected around mid-morning.