Corn futures on the Chicago Board of Trade ended lower on Monday as players took profits amid a downturn in crude oil, lower wheat and a lack of bullish momentum in soy, traders said. "You have to keep an eye on crude all the time. The corn market just doesn't have a lot of pizazz, it was back and forth," said Jerry Gidel, analyst for North America Risk Management Inc.
Crude oil was higher early on Monday but then turned lower on profit-taking and the corn market closely tracked the trade pattern in the oil market. Traders said the corn market was due for some profit taking after climbing to a five-month high overnight.
CBoT corn closed 1 to 3-1/4 cents per bushel lower, with December down 3-1/4 at $3.85-3/4 per bushel. March was down 2-1/2 at $4.03-1/4 per bushel. Declines in corn were limited by brisk demand for corn amid the declining value of the US dollar.
Traders and analysts have said underlying support in the corn market was stemming from an aggressive export sales pace of US corn and the USDA's export sales report that was released early on Friday showed the US corn export sales number above expectations.
Early on Monday, USDA said 47.6 million bushels of corn were inspected for export last week, slightly below the low end of estimates for 49.0 million to 56.0 million bushels.
US crop weather has moved to the background as a market factor because the US corn harvest is virtually complete. DTN Meteorlogix weather early on Monday said some precipitation was expected in the east, southern Midwest and in the Delta and no severe cold weather is expected over the next week to 10 days.
Cash basis bids for corn in the Midwest on Monday were mixed, rising at most locations around the interior but falling along rivers. Technical traders are watching the December contract trade above all key moving averages with first support at its 20 day moving average of $3.79 per bushel. The nine-day relative strength index is at 63. Traders view an RSI of 70 or more as an overbought market and 30 or less as an oversold market.
Resistance for the December contract is at $3.90 per bushel and support at $3.85. Oat futures were flat to down 1-1/2 cents, with December down 1/4 at $2.73-1/2 per bushel.
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