CME: Corn Futures Closed Lower Tuesday
15 February 2012
US - March Corn finished down 6 at 633 1/2, 7 off the high and 2 up from the low. May Corn closed down 5 at 638. This was 2 1/4 up from the low and 6 1/4 off the high.
March corn closed sharply lower on the session and gave back nearly all of the gains from yesterday. Speculative spread trading of buying soybeans and selling corn helped to pressure.
A negative tone to outside market forces plus ideas that the late rally yesterday was a bit overdone helped spark the early weakness in the corn market this morning.
News from the baseline USDA data was viewed as a mixed bag. China import demand is expected to grow significantly in the next ten years. However, the baseline data also shows that US corn planted area for the 2012/13 season would be at the highest level since 1944 with a record production this season and also showed that ending stocks would more than double from 801 million bushels for the 2011/12 season.
Weakness in wheat and a firm US dollar were also seen as negative factors today but further strength in soybeans helped support the market to trade near unchanged on the day into the mid-session. March Rice finished up 0.25 at 14.385, 0.015 off the high and 0.235 up from the low.
Wheat Futures Closed Lower
March Wheat finished down 6 1/4 at 635, 8 off the high and 2 1/2 up from the low. July Wheat closed down 7 1/2 at 649 3/4. This was 2 1/2 up from the low and 8 3/4 off the high.
March wheat closed moderately lower on the session and gave back a good portion of yesterday's gains. Funds were noted sellers late in the day to pull the market from higher to lower on the day in the last hour of trade. A strong US dollar, news of record high wheat production in Australia and talk of less wheat weather threats just ahead spark some long liquidation selling pressures early today.
The market managed to hold support above yesterday's lows and bounced to near unchanged on the day into the mid-session. Australia officials raised their wheat production forecast by 4.2% to a record high 29.5 million tonnes. March Oats closed down 1 3/4 at 323 1/4. This was 3 up from the low and 4 off the high.
Soybean Futures Closed Higher
March Soybeans finished up 3 at 1255, 6 3/4 off the high and 9 1/2 up from the low. May Soybeans closed up 2 1/2 at 1262 1/2. This was 9 1/2 up from the low and 6 1/2 off the high. March Soymeal closed down 0.4 at 330.1.
This was 3.0 up from the low and 1.8 off the high. March Soybean Oil finished down 0.03 at 53.02, 0.24 off the high and 0.32 up from the low. March soybeans closed slightly higher on the session but well off of the late-in-the-session highs. Weakness in equity and metal markets helped to spark some long liquidation selling late in the day after the market first traded at the highest level since October 27th.
Outside market forces were a bit negative this morning but expectations for hot and dry weather to continue for parts of southern Brazil and further signs of strong soybean export demand helped to support the market to trade moderately higher on the day into the mid-session.
With the China trade delegation in the country this week, traders also see the possibility of large sales over the near-term. The USDA confirmed sales of 283,000 tons of US soybeans to unknown destination. Of the total, 215,000 was old crop and 68,000 were for the 2012/13 season.
The NOPA crush this morning for January came in at 142.813 million bushels which was below trade expectations and suggests sluggish domestic demand.
TheCropSite News Desk
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