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CME: Corn Futures Closed Higher Wednesday

28 June 2012

US - September Corn finished up 10 at 629 1/2, 19 3/4 off the high and 17 1/2 up from the low. December Corn closed up 10 at 634. This was 16 3/4 up from the low and 22 3/4 off the high.

December corn was trading 10 cents higher heading into the closing bell after trading a 38 cent range yesterday. The early trade penetrated highs made in September of 2011 but gains were erased after traders began taking profits ahead of a CME margin increase this evening and ahead of the USDA reports for Friday.

Producer selling was also active. Weather maps show scorching temperatures for the central and southern Midwest to finish out this week. The heat dome is expected to stretch from the panhandle of Oklahoma to the coast of South Carolina.

Temperatures in Central Illinois and Indiana are expected to reach 100 degrees by tomorrow which will likely increase stress on corn and diminish yield potential for areas in the southern Midwest and Delta. The USDA will release their Grain Stocks and Planting Intentions report Friday.

The trade expects a slight increase in corn acreage, however traders will key off the stocks estimate. The trade expects June 1 stocks of near 3.17 billion bushels with range of estimates as wide as 670 million bushels.

Ethanol production for the week ending June 22nd averaged 883,000 barrels per day. This is down 1.9 per cent vs. last week and down 1.1 per cent vs. last year. Total Ethanol production for the week was 6.18 million barrels which is down from 6.30 million barrels last week.

Corn used in last week's production is estimated at 94.06 million bushels which is a 9 week low. Corn use needs to average 97.5 million bushels per week to meet the USDA forecast for the season.

Stocks were 20.7 million barrels. This is down 2 per cent vs. last week and up 6.5 per cent vs. last year. September Rice finished down 0.02 at 15.01, 0.17 off the high and 0.01 up from the low.

Soybean Futures Closed Higher

August Soybeans finished up 1/2 at 1456, 25 1/2 off the high and 4 up from the low. November Soybeans closed down 1 1/4 at 1412. This was 3 1/4 up from the low and 27 3/4 off the high. August Soymeal closed down 0.5 at 423.7.

This was 1.9 up from the low and 6.3 off the high. August Soybean Oil finished up 0.48 at 51.54, 0.39 off the high and 0.72 up from the low. Soybeans were trading slightly lower towards the end of the day.

November soybeans posted new highs for the move and new contract highs before retreating to the bottom end of yesterday's range. August soybean oil traded 44 cents higher while August soybean meal traded 20 cents lower. Speculative profit taking and producer selling was noted, ahead of the USDA reports for Friday.

Soybean futures pushed higher this morning on a scorching heat forecast and support from the corn market. Weather forecasts call for 100 degree temperatures for the central and southern Midwest yesterday and tomorrow.

The two week weather forecast calls for above normal temperature and below normal rainfall for most of the Soybean Belt. The trade continues to monitor crop and weather conditions but expect further deterioration in the new crop soybean yield if weather patterns in July reflect those of June. The US Dollar and stocks are trading higher midday ahead of the European Summit on Thursday.

The USDA will release its Grain Stocks and Planting Intentions on Friday. Traders will key off the soybean planted acreage report but will likely believe that the acreage estimate from the USDA will be too high as many parts of the Midwest will not be able to double crop soybeans over harvested wheat due to topsoil dryness.

Traders are penciling in an increase of 1.6 million acres. The March report estimated planted acreage at 73.9 million acres.

Wheat Futures Closed Higher

September Wheat finished up 4 1/4 at 751 1/4, 12 1/4 off the high and 11 3/4 up from the low. December Wheat closed up 6 at 772 1/4.

This was 13 1/4 up from the low and 11 off the high. September Chicago wheat settled 4 1/4 cents higher yesterday after posting its 3rd consecutive higher high. Kansas City and Minneapolis wheat gained on Chicago with Minneapolis leading the wheat complex higher after Stats Canada estimated Canadian wheat seeding at 23.8 million acres.

This was slightly lower than trade forecasts but exceeded last year's seeded area of 21.5 million acres. Short covering support was noted after corn moved sharply higher on a warmer and drier two week weather forecast.

The USDA will release their Grain Stocks and Planted Acreage report on Friday. Traders are expecting June 1 stocks near 720 million bushels vs. 862 million bushels on June 1, 2011.

The trade also expects all wheat planted acreage near 56.6 million acres. This would be slightly higher vs. the March forecast of 55.90 million acres. September Oats closed up 8 1/4 at 337 1/2. This was 8 up from the low and 4 off the high.

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