TheCropSite.com- news, features, articles and disease information for the crop industry

News

CME: Corn Futures Closed Slightly Higher Thursday

06 April 2012

US - May corn ranged higher today and in turn spent a lot of time in positive ground.

May Corn finished up 1 1/2 at 658 1/4, 5 off the high and 3 1/2 up from the low. July Corn closed up 1 1/2 at 652 1/4. This was 3 3/4 up from the low and 5 1/4 off the high.

Clearly the market got a boost from better than expected export sales data. In fact, weekly export sales for corn came in at 937,600 metric tonnes for the current marketing year and at 185,100 for the next marketing year for a total of 1,122,700 which was considerably higher than trade expectations.

Cumulative corn sales stand at 78.9% of the USDA forecast for 2011/12 (current) marketing year versus a 5 year average of 74.6%. Sales of 409,000 metric tonnes are needed each week to reach the USDA forecast.

Outside market forces started out as a potential drag but favorable US scheduled data and a recovery attempt in US equities shifted a possible risk-off day into a partial risk on day.

Apparently the corn market wasn't overly impacted because of adverse currency market action today.

New crop December corn continued to gain against old crop but a freeze threat in the upper Midwest is something that could offer up a surprise into the Monday opening. At least into the close today, the trade wasn't expressing significant concern toward the cold front due in Thursday night but that could make next weeks cold threat a little more important.

Wheat Futures Closed Lower

May Wheat finished down 3/4 at 638 1/2, 11 1/2 off the high and 2 1/2 up from the low. July Wheat closed down 3 1/2 at 646 1/4. This was 1 1/4 up from the low and 12 3/4 off the high. May wheat opened higher and ended up spending a large amount of time in positive ground. Wheat might have garnered some spillover support from strength in rapeseed prices and perhaps some minor lift from noted gains in energy and metals prices.

Outside market forces started out as a potential drag to wheat today but favorable US and Canadian scheduled data flows and a recovery attempt in US equities seemed to shift a possible risk-off day into a partial risk on day and that helped many physical commodity markets.

Net weekly export sales for wheat came in at 408,300 metric tonnes for the current marketing year and 103,400 for the next marketing year for a total of 511,700.

Cumulative wheat sales stand at 94.9% of the USDA forecast for 2011/2012 (current) marketing year versus a 5 year average of 93.0%.

Sales of 153,000 metric tonnes are needed each week to reach the USDA forecast. The sales were towards the upper end of trade expectations and may have contributed to the stronger opening.

The market has traded either side of unchanged this morning and has remained within the lower 2/3rds of yesterday's range.

A modest recovery in the stock market lends some outside market support, but the stronger dollar is a mitigating factor.

Egypt bought 115,000 tonnes of US soft red winter wheat for May 21-31st shipment.

Private exporters reported sales of 138,900 tonnes of mixed varieties of wheat for the next marketing year to unknown destinations, including 68,050 tonnes of hard red winter wheat, 40,000 tonnes of soft white, 28,450 tonnes of hard red spring wheat and 2,400 tonnes of durum.

Tunisia is tendering to buy 75,000 tonnes of soft wheat and 25,000 tons of durum.

Soybean Futures Closed Higher

May Soybeans finished up 14 1/2 at 1434, 1/4 off the high and 19 1/4 up from the low. July Soybeans closed up 14 at 1437 3/4. This was 18 3/4 up from the low and equal to the high.

May Soymeal closed up 3.7 at 391.9. This was 4.3 up from the low and 1.2 off the high.

May Soybean Oil finished up 0.62 at 56.64, 0.04 off the high and 0.82 up from the low.

May soybeans opened higher today and almost managed a fresh upside breakout on the charts. Some bears might suggest that the market has forged a quasi triple top but in the short term the technical condition of the market might take a back seat to the fundamentals.

Not surprisingly the soy complex continues to recover nicely from yesterday's sell off, as the classic fundamental outlook is strong in the wake of last week's bullish acreage and grain stocks reports.

The market clearly got a boost from better than expected export sales in beans and meal this morning and with weekly export sales for soybeans today coming in at 406,900 metric tonnes for the current marketing year and at 706,000 for the next marketing year the sales today were a big assist to the bull camp.

In fact, a total export sale of 1,112,900 is a really strong number that was well above trader expectations and that could make next Tuesday's report even more important.

Cumulative soybean sales stand at 91.4% of the USDA forecast for 2011/2012 (current) marketing year versus a 5 year average of 91.8%. Sales of 134,000 metric tonnes are needed each week to reach the USDA forecast.

Meal sales came in at 174,000 metric tonnes for the current marketing year and 700 for the next marketing year for a total of 174,700, also above expectations. Cumulative meal sales stand at 71.0% of the USDA forecast for current marketing year versus a 5 year average of 69.4%. Sales of 88,000 metric tonnes are needed each week to reach the USDA forecast.

Oil sales showed net cancellations of 3,500 metric tonnes, all for the current marketing year, which was disappointing against expectations. Cumulative soybean oil sales stand at 61.4% of the USDA forecast for current marketing year versus a 5 year average of 63.1%.


Daily Crop Report - Copyright � 2008 CME. All rights reserved.


TheCropSite News Desk

Our Sponsors

Partners


Seasonal Picks

Country Dance