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CME: Corn Futures Closed Higher Tuesday

22 August 2012

US - December Corn finished up 15 at 838 3/4, 1 1/4 off the high and 17 1/4 up from the low. March Corn closed up 13 3/4 at 837 3/4. This was 15 3/4 up from the low and 1 1/4 off the high.

December corn traded sharply higher into the close and posted a new high for the move. The US Dollar traded sharply lower today, offering support to the corn complex.

A highly respected crop tour continues to report lower than expected yields across areas of the Midwest. However, crop scouts did report that irrigated corn in Nebraska weathered this summer's drought rather well.

The crop tour will report average corn yields for Nebraska and Indiana this evening, but traders believe yields will be reported below market expectations.

Export and livestock demand remains weak in the domestic market, but bids for corn in Cedar Rapids, Iowa rose 15 cents per bushel today as physical traders attempted to get grain moving.

Country movement of grain has been slow, as farmers see high prices ahead and some are unsure as to what type of quality they will have. Traders also cited large purchases of calls in December and March corn which offered support to prices throughout the day.

November Rice finished up 0.125 at 16, 0.08 off the high and equal to the low.

Soybean Futures Closed Higher

November Soybeans finished up 49 at 1732 1/2, 1 1/2 off the high and 51 1/2 up from the low. January Soybeans closed up 46 3/4 at 1720 1/2. This was 48 1/4 up from the low and 1 1/2 off the high. December Soymeal closed up 11.7 at 524.5.

This was 12.4 up from the low and 3.4 off the high. December Soybean Oil finished up 1.69 at 56.22, 0.08 off the high and 1.93 up from the low.

November soybeans posted a new high for the move today and closed near the session highs. Soybean meal traded higher while December soybean oil traded to a new 3 month high.

Reports of lower than average soybean pod counts by a highly respected crop tour sent soybeans futures to new highs and the gains held throughout the session. Demand remains robust in the short term, with China's soy imports gaining 9.5 per cent in July.

Spot basis bids for soybeans on barges were steady to higher today after country movement was reportedly very slow.

The water levels along the Mississippi River have forced barges to be loaded lighter than normal, and transit times have slowed. This along with solid export demand for soybeans has kept Gulf of Mexico soybean values firm. The US Dollar traded sharply lower on the day, which offered additional support to soybeans.

Wheat Futures Closed Higher

December Wheat finished up 19 1/4 at 922, 4 1/4 off the high and 21 1/4 up from the low. March Wheat closed up 17 3/4 at 930. This was 19 up from the low and 4 off the high.

September Chicago Wheat traded sharply higher into the close and posted a new high for the move today. Kansas City and Minneapolis Wheat traded higher as well. The sharply higher trade was linked to a strong corn market and concern over the long term export potential for the Black Sea.

The Russian wheat harvest continues to be a concern for wheat traders following reports that yields in Siberia are below year ago levels.

However, traders report that Iran bought 400,000 tonnes of milling quality wheat from the European Union, Baltic Sea, and Black Sea regions today. The shipment period was thought to be September.

Hard red winter wheat areas in the western plains are expected to see good rainfall in the next 7-10 days, which should help planting conditions.

Traders continue to monitor the weather in Australia, as El Nino could dry out wheat growing regions significantly over the next month. The US Dollar traded sharply lower on the day, which added to the positive trade. December Oats closed up 8 1/4 at 397. This was 10 up from the low and 1 off the high.

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