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CME: Corn Futures Closed Lower Friday

15 October 2012

US - December Corn finished down 20 1/2 at 752 3/4, 20 off the high and 3 1/4 up from the low. March Corn closed down 20 1/2 at 752 3/4. This was 3 1/2 up from the low and 19 3/4 off the high.

The corn market traded sharply lower on the day with the December contract trading briefly below the 750 level midday.

The weaker trade was linked to profit taking, rumors that more South American corn has been imported into the US, and another week of disappointing export sales. Total net weekly export sales for corn came in at 14,200 tonnes.

Sales of 396,000 tonnes are needed each week to reach the USDA forecast for this crop year. Rumors began to circulate around the market midday that US traders had imported corn from Argentina.

This sent a short term signal that maybe corn prices had moved high enough and traders took profits on the news.

Additional pressure was linked to profit taking and liquidation of positions after yesterday's gains and ahead of this weekend.

Very little support was found in the broader commodity complex with crude oil lower, gold was weaker, and soybeans were down nearly 27 cents on the day.

November Rice finished up 0.05 at 15.025, equal to the high and 0.165 up from the low.

Soybean Futures Closed Lower

November Soybeans finished down 26 at 1522 1/2, 31 off the high and 12 1/2 up from the low. January Soybeans closed down 26 1/2 at 1522. This was 12 1/2 up from the low and 30 3/4 off the high.

December Soymeal closed down 7 at 465.2. This was 4.7 up from the low and 8.6 off the high.

December Soybean Oil finished down 0.66 at 50.67, 0.97 off the high and 0.47 up from the low.

November soybeans traded sharply lower into the close and had a rocky day due to broad based commodity liquidation which triggered profit taking in soybeans after yesterday's failure to make a new high for the move.

The soybean market continues to have long term support given the explosive export sales pace this year but this mornings reported sales disappointed the market with only 500,700 tonnes for the current marketing year and 23,000 for the next marketing year for a total of 523,700.

As of October 4th, cumulative soybean sales stand at 69 per cent of the USDA forecast for the current marketing year.

Sales of 221,000 tonnes are needed each week to reach the USDA forecast. Total net meal sales were reported at 221,400 tonnes and 70,000 tonnes are needed each week to reach the USDA forecast.

Finally, total net oil sales stand at 10,400 tonnes and 7,000 tonnes are needed each week to reach the USDA forecast.

Additional pressure was linked to a favorable 6-15 day weather forecast for most of South America which should benefit row crops in the region.

Wheat Futures Closed Lower

December Wheat finished down 29 1/4 at 856 3/4, 29 3/4 off the high and 3 1/2 up from the low. March Wheat closed down 27 3/4 at 869 1/4. This was 4 up from the low and 27 3/4 off the high.

December Chicago wheat traded sharply lower on the day and finished the day below yesterday's low. Long position liquidation and a worse than expected export sales report likely triggered the weaker trade.

Total net weekly export sales for wheat, came in at 279,900 tonnes As of October 4th, cumulative wheat sales stand at just 43 per cent of the USDA forecast for the current marketing year vs. a 5 year average of 57 per cent.

Sales of 523,000 tonnes are needed each week to reach the USDA forecast. The current 5-week average for wheat export sales is 377,000 tonnes per week.

If sales each week are reported at this level, each week for the remainder of the crop year, US wheat exports will still only be 84 per cent of the final USDA estimate for the year.

The western plains are expected to receive good moisture today through the weekend which should benefit wheat emergence however some are concerned accumulation may be light in the driest areas of the region.

The sharply lower trade trended across most commodity markets throughout the day with gold, crude oil, soybeans, and corn all trading lower.

December Oats closed up 3 1/2 at 392. This was 5 up from the low and 2 1/4 off the high.


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