CME: Corn Futures Closed Lower Thursday
17 February 2012
US - March Corn finished down 6 1/2 at 627, 11 1/2 off the high and 1 3/4 up from the low. May Corn closed down 7 at 631. This was 2 up from the low and 11 off the high.
May corn closed sharply higher on the session and near the highs as a general perception that recent lower prices have attracted strong demand helped to support more active buying.
The market pushed down to the lowest level since January 24th overnight but news that export demand improved on the recent break plus a shift from negative to positive for outside market forces helped to support the strong gains into the mid-session.
Net weekly export sales for corn, came in at 1,005,900 metric tonnes for the current marketing year and 61,500 for the next marketing year for a total of 1,067,400. Cumulative corn sales stand at 67.9 per cent of the USDA forecast for 2011/2012 (current) marketing year versus a 5 year average of 64.0 per cent. Sales of 473,000 metric tonnes are needed each week to reach the USDA forecast.
In addition to the weekly sales, talk that South Korea may be active buyers on the break this week and ideas that producer selling remains tight helped to support the strong rally back into the recent trading range into the mid-session.
Ideas that the market is a bit oversold after the recent set-back and talk that China may be a buyer "if" the market breaks too far helped to provide some underlying support as well. Gulf basis was a bit weaker for Feb shipment but up 1-2 cents for March, April and May shipment. March Rice finished down 0.04 at 14.345, 0.105 off the high and 0.055 up from the low.
Wheat Futures Closed Lower
March Wheat finished down 9 at 626, 14 1/2 off the high and 1 3/4 up from the low. July Wheat closed down 3 at 646 3/4. This was 3 1/2 up from the low and 7 1/2 off the high. May wheat closed slightly higher on the day after choppy and two-sided trade.
Ideas that the market has already pushed low enough to attract a significant jump in demand for US wheat helped to support. Outside markets shifted from negative to positive since the overnight session and Egypt bought US wheat and these factors supported the market early in the session.
Ideas that the market is oversold after falling to the lowest level since January 20th plus weakness in the US dollar and a surge up in the US stock market helped to spark solid gains into the mid-session.
Egypt bought 180,000 tonnes of US wheat this morning and news that Russia did not even submit offers helped to support. Net weekly export sales for wheat came in below trade expectations at 420,400 metric tonnes for the current marketing year and 7,500 for the next marketing year for a total of 427,900.
As of February 9, cumulative wheat sales stand at 85.9 per cent of the USDA forecast for 2011/2012 (current) marketing year versus a 5 year average of 84.0 per cent. Sales of 232,000 metric tonnes are needed each week to reach the USDA forecast.
Taiwan bought 85,050 tonnes of US wheat in their tender overnight. July KC wheat closed 14 1/4 cents higher on the day with an outside day up after first pushing to the lowest level since January 20th. March Oats closed up 1 1/4 at 324 1/2. This was 2 3/4 up from the low and 3 1/2 off the high.
Soybean Futures Closed Higher
March Soybeans finished up 6 at 1261, 8 off the high and 12 up from the low. May Soybeans closed up 6 1/4 at 1268 3/4. This was 12 1/4 up from the low and 7 3/4 off the high. March Soymeal closed up 2.7 at 332.8. This was 4.4 up from the low and 2.0 off the high. March Soybean Oil finished up 0.33 at 53.35, 0.09 off the high and 0.57 up from the low.
May soybeans closed slightly lower on the day after choppy and two-sided trade. Ideas that the market has already priced-in the weather developments in southern Brazil and the recent strong buying trend from China helped spark the choppy trade.
The market saw bearish outside market forces for the overnight session and this helped pressure the market early in the day but a turn down in the US dollar and a sharp rally in the US stock market due to better than expected economic news in the US helped to support a bounce in the market to near unchanged on the day after the lower trade early.
Ideas that the market was a bit overbought after the 4-day rally added to the negative tone early in the day. Weekly export sales news was slightly disappointing and traders suspect that there will be more announced agreements for China to purchase US soybeans this week on top of the 8.62 million agreed on late yesterday.
Traders see a total of near 12 million tonnes for the week as compared with near 11 million tonnes last year when the China delegation toured the US. China imports a total of near 55 million tonnes per year. Net weekly export sales for soybeans came in at 436,700 metric tonnes for the current marketing year and 178,000 for the next marketing year for a total of 614,700.
As of February 9th, cumulative soybean sales stand at 78.8 per cent of the USDA forecast for 2011/2012 (current) marketing year versus a 5 year average of 85.2 per cent. Meal sales were 80,100 metric tonnes vs. 95,000 needed each week to reach the USDA forecast. Oil sales were 21,100 metric tonnes vs. 9,000 needed each week to reach the USDA forecast. The rally in corn and the US stock market helped to provide some support.
TheCropSite News Desk
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