CHICAGO (Dow Jones)--A continued frost-free weather outlook should lead to more losses for Chicago Board of Trade corn on Friday's open, analysts said.

Corn is called 2 to 4 cents lower. In overnight trading, December corn was down 3 1/4 cents to $3.25 3/4 per bushel and March corn was down 3 3/4.

After climbing almost 30 cents Tuesday when weather models indicated the Midwest could get hit with a frost late last week, the market has spent the rest of the week so far removing the weather premium. Forecasters say there is no apparent frost threat for at least the next week.

Although there's little to support the market other than the frost potential, traders and analysts say the market might not go right back to where it started, before Tuesday's rally. December corn had closed at $3.17 3/4 per bushel on Monday.

"The problem is the weather models are updated 4 times in a 24 hour day," Mark Gold, managing partner for Top Third Ag Marketing, said in a market commentary. "This leads to a lot of second guessing and constant shifting of weather patterns."

Tuesday's rally also improved the outlook technically, at least temporarily, traders and analysts said.

Analysts said that Thursday's close was "constructive" despite losses.

"If corn can close out the week above the 3.25 support level and outside markets remain positive I think that may set the stage for the market to avoid retesting the near-term low around 3.05 again until after the frost threat dissipates into the end of the month," an analyst said.

The market could be supported by positioning ahead of the weekend, analysts added.

"Traders don't want to carry a short position going into the weekend, just in case there are any changes in the weather forecast," said Terry Reilly, analyst with Citigroup.

But without a frost to hurt the crop, many say the market will ultimately break below $3.

Gold said that "the yields reports are so staggeringly large that without the frost record crops are coming."

In export news, analysts said a Taiwan purchase of 60,000 metric tons of Brazilian corn was bearish for the U.S. market.

The corn bulls' next upside price objective is to push December prices above solid technical resistance at this week's high of $3.47 3/4 a bushel, a technical analyst said. The next downside price objective for the bears is to push and close prices below solid technical support at this week's low of $3.15 1/4 a bushel.

First resistance for December corn is seen at $3.30 and then at $3.35, the technical analyst said. First support is seen at Thursday's low of $3.22 3/4 and then at $3.20.


-By Ian Berry, Dow Jones Newswires; 312-341-5778; ian.berry@dowjones.com