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CME: Corn Futures Closed Higher Monday

03 July 2012

US - September Corn finished up 24 1/4 at 652 3/4, 4 3/4 off the high and 12 up from the low. December Corn closed up 21 1/2 at 656 1/4. This was 11 1/2 up from the low and 7 3/4 off the high.

The corn market traded sharply higher into the closing bell after December corn pushed to a new 10 month high overnight. Corn traders took profits midday after updated weather maps showed a better chance for rainfall in the Eastern Corn Belt over the next 10 days.

The 11 to 15 day maps looks wetter for the Central and South Western Midwest, although confidence is low in this forecast. Pop-up showers are possible for states in the northern Midwest as a ridge sets up a, "heat dome" from Kansas to Southern Illinois.

Corn opened explosively Sunday night after weekend rain accumulation disappointed the market. Overall, the hot and dry weather should keep most of the southern Midwest corn crop stressed this week. Export inspections for the week ending June 28th were reported at 22.2 million bushels vs. last week's inspections of 27 million bushels.

Inspections needed each week to reach the USDA estimate are at 35.4 million bushels. US exporters reportedly sold 110,500 tonnes of US corn to Mexico for 2012/13 delivery. This is offering strength to December corn today.

Demand remains weak for the corn market as Ethanol Margins continue to be negative. Ethanol Margins for the week ending June 29th show Iowa Processors holding a significant loss. Crop progress reports are expected to show significant loss for Midwestern corn growing states this afternoon.

Corn shook off the higher dollar and negative action in metals and energies to end higher on the day. Traders are anticipating a 5 per cent decrease in the good-to-excellent ratings released this afternoon. September Rice finished up 0.19 at 14.68, 0.08 off the high and equal to the low.

Soybean Futures Closed Higher

August Soybeans finished up 12 1/2 at 1494 1/4, 15 1/2 off the high and 9 1/4 up from the low. November Soybeans closed up 10 1/4 at 1438. This was 7 1/2 up from the low and 17 3/4 off the high. August Soymeal closed up 7 at 436.5.

This was 4.0 up from the low and 4.3 off the high. August Soybean Oil finished down 0.03 at 52.36, 0.74 off the high and 0.43 up from the low. November soybeans traded 10 cents higher into the close but well off the session high of 14.55 3/4.

August soybean oil traded 9 cents higher while soybean meal rallied $5 on the day. The 5-day outlook for very hot and dry weather for the Midwest and northern Delta region helped to support the market to new contracts high.

Soybean traders took profits midday after updated weather maps showed a better chance for rainfall in the eastern Soybean Belt over the next 10 days. The 11 to 15 day map looks wetter for the Central and South Western Midwest, although confidence is low in this forecast. High humidity and warm temperatures will increase the chance for pop-up thunderstorms around the soybean Belt.

Northern Indiana, Wisconsin, and Ohio could benefit from this chance of rainfall. The USDA announced a sale of 1.9 million tonnes of US soybeans to unknown destination.

Traders believe this will be China and it is the fifth largest one-day sale on record. Export inspections came in at 13.89 million bushels which was up from 9.182 million last week and up from 12.8 million necessary each week to reach the USDA projection for the year.

Outside markets were slightly negative with the US Dollar trading slight higher and energies weaker on the day. Soybeans shook off the negative tilt as traders anticipate a sharp drop in crops rated good to excellent of 3-4 per cent in tonight's weekly update.

Wheat Futures Closed Higher

September Wheat finished up 15 1/4 at 772 1/2, 2 1/4 off the high and 16 1/4 up from the low. December Wheat closed up 14 at 790 3/4. This was 15 1/4 up from the low and 4 off the high. Chicago wheat is sharply higher at the close with the September contract settling 15 3/4 cents higher on the day.

Kansas City September wheat traded 14 cents higher near the close and Minneapolis Spring wheat was up 9 to 10 cents for the day. The USDA weekly export inspections for the week ending June 28th, came in at 21.46 million bushels. Wheat inspections needed to reach the USDA goal are now 22 million bushels.

Jordan tendered for 100,000 tonnes of wheat today but results have not been released. Wheat is seeing support after the International Grains Council cut global wheat supply for 2012/13 to 665 million tonnes. Current USDA projections have global wheat production pegged at 672.06 million tonnes.

The group also cut Russian wheat production to 49 million tonnes. Short covering in wheat continues to be active as corn rallies on weather. September Oats closed up 9 1/4 at 347 1/4. This was 6 1/4 up from the low and 4 1/2 off the high.


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