CME: Corn Futures Closed Higher Thursday

27 January 2012

US - March Corn finished unchanged at 634 1/2, 11 1/4 off the high and 1 1/4 up from the low. May Corn closed down 1/4 at 640. This was 1 3/4 up from the low and 11 off the high.

March corn closed unchanged on the session and down 11 1/4 cents from the early peak. Strong export sales news plus a positive outlook for commodity prices after the Fed Chairman comments yesterday helped to drive the market sharply higher early in the session.

However, talk of the overbought condition of the market and ideas that producer selling was increasing on the rally helped to spark some profit-taking selling. US dollar weakness and strength in metal and energy markets helped to support early but the US dollar recovered some of the early losses and equity prices shifted from higher to lower and this added to the negative tone.

Weekly export sales for corn came in at 958,100 metric tonnes for the current marketing year and 82,500 for the next marketing year for a total of 1.04 million tonnes. As of January 19th, cumulative corn sales stand at 63.7 per cent of the USDA forecast for 2011/2012 (current) marketing year versus a 5 year average of 57.9 per cent.

Sales of 471,000 metric tonnes are needed each week to reach the USDA forecast. March Rice finished up 0.1 at 14.69, 0.06 off the high and equal to the low.

Wheat Futures Closed Higher

March Wheat finished up 12 1/4 at 653 1/2, 4 3/4 off the high and 13 3/4 up from the low. July Wheat closed up 8 3/4 at 680. This was 10 3/4 up from the low and 3 off the high.

March wheat closed sharply higher on the session and the rally pushed the market up to the highest level since January 4th and above the 100-day moving average for the first time since August. The market has closed higher for six sessions in a row.

Net weekly export sales for wheat came in at 604,700 metric tonnes for the current marketing year and 14,000 for the next marketing year for a total of 618,700.

As of January 19th, cumulative wheat sales stand at 81.8 per cent of the USDA forecast for 2011/2012 (current) marketing year versus a 5 year average of 79.2 per cent. Sales of 246,000 metric tonnes are needed each week to reach the USDA forecast. Talk of an easier monetary policy ahead plus the weaker US dollar and the potential for more short-covering from funds helped to support.

The EU granted export licenses for 218,000 tonnes this week to push the cumulative exports for the 2011/12 marketing year to 7.9 million tonnes as compared with 12.3 million tonnes last year at this time.

Fears of the potential for winterkill damage for Black Sea winter wheat with a surge of cold air this weekend added to the positive tone. March Oats closed up 2 1/2 at 300 3/4. This was 3 1/2 up from the low and 5 3/4 off the high.

Soybean Futures Closed Higher

March Soybeans finished up 9 1/4 at 1222 3/4, 8 1/4 off the high and 9 1/2 up from the low. May Soybeans closed up 9 1/4 at 1232. This was 9 1/2 up from the low and 8 off the high.

March Soymeal closed up 2.5 at 323.6. This was 3.1 up from the low and 2.5 off the high. March Soybean Oil finished up 0.55 at 51.94, 0.06 off the high and 0.68 up from the low.

March soybeans closed moderately higher on the session but buying seemed to ease up for the second half of the session and the market closed 8 1/4 cents down off of the early highs. Ideas that the weather situation is at least stabilizing in South America and talk that northern areas which are ready for harvest may see some drier weather next week to help boost the harvest activity may have been a limiting factor on the rally.

The early rally pushed the market up to the highest level since January 11th and through the 100-day moving average for the first time since September 16th. Talk of the accommodating Fed reserve stance, a weaker US dollar and a surge higher in metal and energy markets supported the early rally.

Weekly export sales for soybeans came in at 466,300 metric tonnes for the current marketing year and 126,000 for the next marketing year for a total of 592,300 which was below trade expectations. Cumulative soybean sales stand at 75.0 per cent of the USDA forecast for 2011/2012 (current) marketing year versus a 5 year average of 79.8 per cent.

Meal sales came in at 124,200 metric tonnes for the current marketing year and 2,400 for the next marketing year for a total of 126,600. Sales of 96,000 metric tonnes are needed each week to reach the USDA forecast. Oil sales were just 2,500 metric tonnes as compared with a weekly average of 9,000 needed each week to reach the USDA forecast.