Weather, dollar cheapen maize
April 15, 2004
By Reuters
Chicago - Maize futures were set to open lower yesterday on follow-through pressure after Tuesday's wave of chart-based fund selling, which drove Chicago Board of Trade contracts to double-digit declines, traders said.
The sell-off was ignited by the rapid seedings of the US maize crop due to clear, warm weather across the maize belt.
Continued prospects for a steady planting pace was expected to keep the pressure on.
Farmers are getting the crop into the ground early, trying for optimum yields and remembering last year's narrow escape from August drought pressure.
The dollar's surge on strong US consumer price index data was also expected to weigh on Chicago grain prices. A strong dollar dampens importer demand.
Exports failed to generate any bullish momentum.
The trend in electronic trade in Chicago overnight was down by between 0.5c and 1.75c a bushel. May maize was down 1.5c at $3.1025 a bushel, with nearby support pegged at $3.07 and resistance at $3.18.
|
|
