News

CME: Corn Futures Closed Higher Monday

24 April 2012

US - July Corn finished up 9 1/2 at 612 1/2, equal to the high and 12 1/2 up from the low. December Corn closed up 8 3/4 at 545 1/2. This was 12 3/4 up from the low and equal to the high.

May corn closed higher on the day but still down near the lower end of a 6 1/2 month trading range. The weekly COT report showed an active long liquidation selling trend from speculators and traders viewed the market as oversold.

Continued talk that China is in the process of booking corn from the US and others plus a lack of new selling interest even with a bearish influence from outside markets and a real "risk off" mentality from fund traders yesterday helped to support solid gains in old crop corn this morning.

News that exporters reported a sale of 120,000 tonnes of US corn for 2012/13 delivery helped to provide some support. Ideas that the sell-off on Friday was overdone plus more and more talk that there is substance to the China rumors of restocking reserves with new crop US corn helped to support.

Weekly export inspections came in at 29.38 million bushels which was well below trade expectations for the report and compares with 30.9 million bushels necessary each week to reach the USDA projection. While the temperature outlook is colder than desired this week, there is only a limited amount of rain expected across the heart of the Midwest and planting is expected to be active. In addition, traders see warmer weather for next week.

Traders see weekly updates for this afternoon showing that near 31 per cent of the crop is planted as compared with 8 per cent last year and 14 per cent as the 20-year average. July Rice finished up 0.17 at 15.93, equal to the high and 0.28 up from the low.

Soybean Futures Closed Lower

July Soybeans finished down 8 1/2 at 1441, 16 1/4 off the high and 1 1/4 up from the low. November Soybeans closed down 14 1/2 at 1341 1/2. This was 1 1/4 up from the low and 22 3/4 off the high. July Soymeal closed down 6.5 at 403.4.

This was 0.4 up from the low and 6.1 off the high. July Soybean Oil finished down 0.79 at 55.49, 0.87 off the high and 0.16 up from the low. May soybeans closed moderately lower on the session and gave back part of the strong gains from Friday. With a bearish set-up for commodities in general yesterday (higher US dollar, sharply lower trade in the stock market and weaker action for metal and energy markets) and ideas that part of the late rally Friday was option expiration inspired, the market saw some early selling to push the market moderately lower on the day.

Talk of good planting weather for the US for the next few weeks and a continued flow of new export sales news helped to keep the trade choppy and helped to pressure the new crop November soybeans. Exporters reported a sale of 165,000 tonnes of US soybeans to unknown destination for the 2011/12 time frame helped to provide some underlying support; especially for old crop contracts.

Weekly export inspections came in at 12 million bushels which was sharply below trade expectations and compares with 11.3 million bushels necessary each week to reach the USDA projection. Higher trade in corn yesterday had traders talking about liquidation of soybean/corn spreads as well.

Wheat Futures Closed Higher

July Wheat finished up 9 1/2 at 632 1/2, 2 1/2 off the high and 11 1/4 up from the low. December Wheat closed up 10 1/4 at 672. This was 12 1/4 up from the low and 2 off the high. May wheat closed moderately higher with talk of the oversold condition of the market and some concerns for cold weather threat later this week helping to support.

The market opened near unchanged on the day but quickly experienced active short-covering to drive the market moderately higher on the day into the mid-session. There are some cold weather concerns for the eastern Corn Belt for late this week which might have sparked some of the buying as the soft red crop is advancing.

Weekly export inspections came in at 24.39 million bushels which was above the range of estimates for the report and compares with 18.3 million bushels necessary each week to reach the USDA projection.

Trend-following fund traders (non-commercial less index funds) held a near record net short position of 96,705 contracts as of April 17th and this helped to support as traders fear that it will not take much in the way of positive news to see more short-covering.

Weekly crop conditions and weekly spring wheat planting progress will be released this afternoon. July Oats closed up 2 1/2 at 326 3/4. This was 4 3/4 up from the low and 1 3/4 off the high.