CME: Corn Futures Closed Up on Wednesday12 April 2012
US - May Corn finished up on Wednesday in the latest CME report.
May Corn finished up 1 1/4 at 636, 3 3/4 off the high and 5 1/4 up from the low. July Corn closed up 1 1/4 at 627. This was 4 1/4 up from the low and 3 1/4 off the high. The market managed to close slightly higher on the session for old crop and the gains were a few cents better for new crop December corn.
Talk that the cold weather this week plus wet weather for the weekend and early next week helped to support the market and buyers saw the market as cheap after the break of the past several trading sessions. The market saw some early buying support from ideas that the break yesterday was a bit overdone and from supportive outside market forces. The weaker US dollar and a strong recovery in the US stock market helped to support the market early. In addition, a jump in ethanol production and a drop in stocks for the same week added to the positive tone. Weakness in soybeans limited the advance.
Ethanol production for the week ending April 6th averaged 896,000 barrels per day. This is up 2.6% vs. last week and down 0.22% vs. last year. Total Ethanol production for the week was 6.272 million barrels. Corn used in last week's production is estimated at 95.4 million bushels. Corn use needs to average 94.1 million bushels per week to meet the USDA estimate for the season. Stocks were 21.772 million barrels, down 3.5% vs. last week and up 6.13% vs. last year. Traders see weekly export sales for release tomorrow morning near 600,000 tonnes as compared with 1.122 million tonnes last week. May Rice finished up 0.07 at 14.935, equal to the high and 0.095 up from the low.
May Soybeans finished down 4 at 1422, 9 1/4 off the high and 7 up from the low. July Soybeans closed down 3 at 1424 1/4. This was 7 1/2 up from the low and 8 1/4 off the high. May Soymeal closed down 3 at 386.8. This was 0.7 up from the low and 3.0 off the high. May Soybean Oil finished down 0.52 at 56.45, 0.5 off the high and 0.23 up from the low. May soybeans closed lower for the third session in a row as long liquidation selling emerged to pressure.
A supportive tilt to outside market forces such as the weaker US dollar and an early surge in the US stock market helped support the higher opening but sellers were active early and the market was quickly showing moderate losses on the day. Talk of the extreme overbought technical condition of the market and follow-through technical selling from the weak technical action yesterday helped to spark long liquidation selling.
The COT report from Friday showed a record high net long position from fund traders in meal and soybeans and the open interest for soybeans for preliminary data from the CBOT showed a new record high 787,472 contracts and this has traders nervous over the possibility of a corrective break. Traders see weekly export sales for release tomorrow morning near 800,000 tonnes as compared with 1.113 million tonnes last week.
May Wheat finished up 2 1/4 at 628, 5 3/4 off the high and 8 1/4 up from the low. July Wheat closed up 1 1/2 at 633 1/2. This was 6 3/4 up from the low and 6 1/2 off the high. The market managed to close slightly higher on the day after choppy and two-sided trade. Ideas that areas of the southeast could be vulnerable to some crop losses with more cold weather tonight may have helped to provide some support.
The market traded as much as 8 cents higher overnight as cold weather may have caused some light crop damage across parts of the southern Corn Belt. However, most traders see some leave burn back and a quick recovery in crop conditions as permanent damage was not expected for most areas. A weak US dollar and a jump in the stock market after the sharp break yesterday were also seen as factors which contributed to the early buying. However, there was not much in the way of follow-through buying and the market pulled off of the early highs with weakness in soybeans contributing to the lack of new buying interest. Traders see weekly export sales for release tomorrow morning near 500,000 tonnes as compared with 511,700 tonnes last week. May Oats closed down 3 3/4 at 329 1/4. This was 2 3/4 up from the low and 6 1/2 off the high.
TheCropSite News Desk