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CME: Corn Futures Closed Higher Friday

02 July 2012

US - September Corn finished up 2 1/4 at 628 1/2, 19 1/2 off the high and 13 up from the low. December Corn closed up 2 1/4 at 634 1/2. This was 12 1/2 up from the low and 20 1/2 off the high.

The corn market traded higher into the close but well off session highs. December corn had an outside day but failed to take out Wednesday's highs at 6.56 3/4.

July corn gained on September corn as there were no deliveries on First Notice Day Friday. The USDA reports this morning were considered mixed against trade expectations and the market focus quickly shifted back to a threatening weather outlook.

Weather forecasts call for slightly wetter conditions in parts of the central Midwest to eastern Midwest next Monday through Wednesday. The excessive heat is also expected to affect a smaller portion of the lower Midwest over the weekend.

The northern Corn Belt saw showers this morning and afternoon. The storms systems should track southeast from Chicago and run through north-central Indiana and Ohio. The Argentina government approved the export of nearly 3 million more tonnes of old crop corn which tempered the sharply higher trade midday as corn demand weakens due to the sharp rally in prices.

The USDA pegged corn planted acreage at 96.4 million acres compared with trade expectations near 95.9 and compared with 95.864 as the March estimate. This was slightly negative against expectations. June 1st stocks were pegged at 3.148 billion bushels as compared with trade expectations at 3.18 billion with a range of 2.98 to 3.5 billion. This was slightly positive.

The corn market also saw support from broad based commodity buying after positive news was reported out of the European Leaders Summit. Crude oil was up 7.00 per cent near the close as money jumped back into commodities after the U.S. Dollar sank to it's lowest level since June 20th.

Crop Condition ratings are expected to decline sharply next Monday, which is adding to the firmer trade. September Rice finished down 0.415 at 14.49, 0.51 off the high and 0.085 up from the low.

Soybean Futures Closed Higher

August Soybeans finished up 35 1/4 at 1481 1/2, 5 off the high and 40 1/2 up from the low. November Soybeans closed up 25 1/4 at 1428 3/4. This was 27 3/4 up from the low and 7 1/4 off the high. August Soymeal closed up 8.2 at 429.5.

This was 9.6 up from the low and 2.7 off the high. August Soybean Oil finished up 1.3 at 52.39, 0.18 off the high and 1.45 up from the low. The soybean market was sharply higher into the closing bell. The November contract flirted with Wednesday highs at 14.39 3/4 but failed to make a new high for the move.

November soybeans traded no less than a 30 cent range each day this week. July soybeans gained on the August contract as there were no deliveries on first notice day Friday. August soybean oil traded sharply higher and pushed to the highest level since May 14th.

August soybean meal also traded higher on the day. The USDA reports were considered negative for soybeans but after a minor sell-off, the market saw strong gains. Traders believe the higher acreage estimate is partially based on acres which may not get planted with dry soils in double-cropped areas of the southern Midwest.

Furthermore, the market is anticipating increased international demand for U.S. soybeans after a disastrous year of production in South America. Planted acreage for soybeans came in at 76.08 million acres, which was above trade expectations for 75.5 million.

The USDA pegged June 1st stocks at 667 million bushels compared with trade expectations near 640 million. This news was also bearish with stocks coming in 37 million above expectations and above the high end of trade expectations.

Weather forecasts call for slightly wetter conditions in parts of the central Midwest to eastern Midwest next Monday through Wednesday. The excessive heat is also expected to affect a smaller portion of the lower Midwest over the weekend.

The northern Soybean Belt saw showers this morning and afternoon. The storms systems should track southeast from Chicago and run through north-central Indiana and Ohio. The soybean market is also seeing support on expectations that the Crop Progress report on Monday will show lower soybean conditions.

Commodity markets saw broad based support after positive news came out of the European Leaders Summit overnight and the US Dollar sank to it's lowest level since June 20th.

Wheat Futures Closed Higher

September Wheat finished up 11 1/4 at 757 1/4, 5 3/4 off the high and 17 1/4 up from the low. December Wheat closed up 10 at 776 3/4. This was 17 up from the low and 6 1/4 off the high. Chicago September wheat traded an outside-day-up but failed to take out the Wednesday high at 7.63 1/2.

Minneapolis and Kansas City wheat traded higher following the lower than expected planted acreage number. The USDA reports this morning were considered mixed to slightly bullish, with the wheat market pushing higher and following the other grains up.

The Chicago July contract gained on the September after no deliveries were made Friday. The USDA pegged total wheat planted acreage at 56.017 million acres compared with trade expectations for 56.679 million. Spring wheat planted area was 11.995 million acres compared with trade expectations at 12.558 million acres.

June 1st wheat stocks came in at 742 million bushels compared with trade expectations near 723 million. The range was 723 to 748 million bushels.

Commodity markets saw broad based support after positive news came out of the European Leaders Summit overnight and the US Dollar weakened. Crude oil surged nearly 9 per cent into the closing bell which offered supplemental support to wheat, as well as other grains. September Oats closed up 2 at 338. This was 5 up from the low and 6 1/2 off the high.


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