Opening calls for corn futures at the Chicago Board of Trade were mixed on Friday, with some traders expecting support from a rebound in US financial markets after the Federal Reserve cut the discount rate.
Other traders were expecting a lower opening for corn futures based on declines in e-cbot trading overnight, when the September contract fell 4 cents to $3.17-1/2 per bushel. But the declines were posted before the Federal Reserve cut the discount rate on Fed loans to banks by half-percentage point in a surprise move aimed at keeping credit flowing.
Some traders were calling corn futures to open steady to 2 cents per bushel lower and others 1 to 2 cents higher. Turmoil in the credit markets on Thursday sent CBOT futures plunging, along with allied commodity and stock markets.
Among those expecting corn futures to open higher on Friday was grains analyst Don Roose of US Commodities. "We are calling for a higher open based on the rebound in US equities markets," he said "Gold, silver, equities are higher," he said, adding that grain markets pared their losses on Thursday amid bargain hunting by commercials. "There was strong demand ... the markets ran into commercial buying," he said.
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