CME: Corn Futures Closed Lower Thursday
10 February 2012
US - March Corn finished down 5 1/2 at 637, 15 off the high and 4 1/4 up from the low. May Corn closed down 6 1/2 at 641 1/2. This was 4 1/2 up from the low and 14 1/2 off the high.
March corn closed moderately lower on the session but the market managed to hold above yesterday's lows on the break. The USDA report news this morning was considered neutral to slightly negative for corn and the market pushed lower early in the session. However, buyers turned more active in what traders said was a spurt in fund trader buying to drive the market to the highest level since January 12th and to 1/2 cent higher than the close ahead of the key January 12th stocks and final production reports.
The USDA pegged ending stocks for the 2011/12 season at 801 million bushels as compared with 846 million last month and this was up about 10 million compared with trade expectations. Exports were revised higher by 50 million bushels which right on trade expectations. World ending stocks were pegged at 125.35 million tonnes from 128.14 million tonnes last month and from trade expectations for 124.9 million.
Brazil production was 61 million tonnes from trade expectations near 59.2 million tonnes and this was unchanged from the last USDA update. Argentina production was pegged at 22 million tonnes from trade expectations at 21.6 million tonnes and down from 26 million in January.
Net weekly export sales for corn came in at 694,100 metric tonnes for the current marketing year and 63,700 for the next marketing year for a total of 757,800 which was lower than expected. As of February 2nd, cumulative corn sales stand at 65.6 per cent of the USDA forecast for 2011/2012 (current) marketing year versus a 5 year average of 61.8 per cent. Sales of 491,000 metric tonnes are needed each week to reach the USDA forecast.
Ukraine's Farm Minister has asked grain companies to focus on exports of corn and barley but not wheat. Funds were noted as active sellers on the market. March Rice finished down 0.125 at 14.08, 0.09 off the high and 0.03 up from the low.
Wheat Futures Closed Lower
March Wheat finished down 14 3/4 at 646, 18 3/4 off the high and 4 1/4 up from the low. July Wheat closed down 11 at 668. This was 7 up from the low and 15 1/2 off the high. March wheat closed sharply lower on the session and pushed to the lowest level since January 30th. Talk that fund traders were exiting wheat/corn spreads and ideas that the world ending stocks data would weigh on markets ahead helped to pressure.
The report news was somewhat bearish and the market was lower early but the weakness in the US dollar and strength in gold and energy markets helped support some strong buying early in the day to push the market higher. However, selling emerged to drive the market sharply lower on the day into the mid-session.
Ideas that European weather is turning less threatening and that US plains weather may show some improvement ahead helped to pressure the market led by new crop Kansas City wheat which was down 18 1/2 cents on the day at the lows. The USDA reports this morning were considered slightly supportive for the US numbers but bearish for the world numbers.
The USDA pegged US ending stocks at 845 million bushels as compared with 870 million last month due to a revision higher of 25 million for exports. World ending stocks came in at 213.1 million tonnes as compared with expectations under 209 million and 210 million posted last month. This pushes world ending stocks to a new all-time high.
Ukraine's Farm Minister has asked grain companies to focus on exports of corn and barley but not wheat. Ukraine harvested near 22.3 million tonnes of wheat last year but 1012 production could fall to 8-14 million tonnes. Net weekly export sales for wheat came in at 707,900 metric tonnes which was higher than expected.
As of February 2nd, cumulative wheat sales stand at 84.3 per cent of the USDA forecast for 2011/2012 (current) marketing year versus a 5 year average of 82.6 per cent. Sales of 243,000 metric tonnes are needed each week to reach the USDA forecast. Algeria bought at least 700,000 tonnes of wheat on the world market and Syria is tendering to buy 100,000 tonnes. March Oats closed down 10 at 318. This was 2 1/2 up from the low and 10 1/4 off the high.
Soybean Futures Closed Lower
March Soybeans finished down 4 at 1227 1/2, 20 off the high and 4 3/4 up from the low. May Soybeans closed down 4 at 1236. This was 4 1/2 up from the low and 20 off the high. March Soymeal closed down 0.7 at 321.0. This was 3.0 up from the low and 5.0 off the high. March Soybean Oil finished down 0.04 at 52.54, 0.54 off the high and 0.1 up from the low.
March soybeans closed slightly lower on the session but down 20 cents from the early highs. The market opened slightly higher after a lower call and fund traders turned active buying early in the session to drive the market to the highest level since October 28th. The market then set-back from the highs to trade just slightly higher on the day into the mid-session. The USDA report was considered neutral to slightly negative for soybeans.
The USDA pegged US soybean ending stocks at 275 million bushels which was unchanged from last month and a few million higher than expected. The US demand numbers were left unchanged. World ending stocks for the 2011/12 season came in at 60.28 million tonnes, compared with 63.43 million last month and trade expectations at 61.4 million.
Brazil production came in at 72 million tonnes versus trade expectations near 71.3 million tonnes and down from 74 million in the last USDA update. Argentina production was 48 million tonnes, down from 50.5 million in January and right on trade expectations. Net weekly export sales for soybeans came in at 603,200 metric tonnes for the current marketing year and 55,000 for the next marketing year for a total of 658,200.
As of February 2nd, cumulative soybean sales stand at 77.6 per cent of the USDA forecast for 2011/2012 (current) marketing year versus a 5 year average of 83.3 per cent. Sales of 257,000 metric tonnes are needed each week to reach the USDA forecast.
Meal sales came in at 161,900 metric tonnes for the current marketing year and 700 for the next marketing year for a total of 162,600. Sales of 94,000 metric tonnes are needed each week to reach the USDA forecast. Net oil sales came in at 22,200 metric tonnes which was much higher than expected. Sales of 9,000 metric tonnes are needed each week to reach the USDA forecast.
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