TheCropSite.com- news, features, articles and disease information for the crop industry

News

CME: Corn Futures Closed Lower Monday

16 October 2012

US - December Corn finished down 15 1/2 at 737 1/4, 14 1/4 off the high and 4 3/4 up from the low. March Corn closed down 15 1/2 at 737 1/4. This was 5 up from the low and 14 1/4 off the high.

December corn got caught up in the heavy liquidation in the soybean market and ended the day lower but was able to bounce off lows from last week.

December corn failed to make a new high for the move last Friday which may have triggered a fresh round of long liquidation.

Unstable outside markets along with evidence that may suggest demand rationing is taking place has resulted in a lower trade.

News that the US livestock industry had imported 600,000 tonnes of Argentina corn which is the second major import deal signed in recent weeks added to the demand woes in the corn market.

Export inspections for the week ending October 11th were disappointing and were reported at 17.2 million bushels vs. 17.3 last week.

Inspections needed each week to reach this year's USDA forecast is pegged at 24.7 million bushels and the current export pace is 9 per cent of this year's USDA estimate.

Additional pressure was linked to broad-based commodity liquidation as funds exit commodity markets on fears that global economic growth is slowing.

November Rice finished down 0.015 at 15.01, 0.01 off the high and 0.03 up from the low.

Soybean Futures Closed Lower

November Soybeans finished down 30 at 1492 1/2, 27 1/2 off the high and 6 3/4 up from the low. January Soybeans closed down 30 1/4 at 1491 3/4. This was 7 3/4 up from the low and 27 1/2 off the high.

December Soymeal closed down 9.1 at 456.1. This was 1.5 up from the low and 9.0 off the high.

December Soybean Oil finished down 0.66 at 50.01, 0.62 off the high and 0.6 up from the low.

November soybeans closed sharply lower on the day and made a new low for the move at 1485 3/4. Long term support is linked to an explosive export pace, mainly to China, but liquidation by funds kept the bears in control throughout the day.

Export inspections for the week ending October 11th were reported at 57.8 million bushels vs. 45.6 the week prior. Only 20 million bushels are needed each week to meet this year's USDA forecast.

NOPA crush was positive with 119.7 million bushels which was in line with market expectations but fell against August crush of 127.7 million bushels.

South American weather looks favorable with weekend showers favoring northern and eastern Mato Grosso. Rainfall will favor areas of Argentina and western Brazil this week and heavy rainfall will be seen in Southern and Eastern Argentina by mid-week.

The heavy rainfall could slow the planting pace for these regions but a dry period is expected to develop thereafter. Brazil's 6-15 day outlook calls for expanding rainfall which should favor summer row crop development.

Wheat Futures Closed Lower

December Wheat finished down 8 1/2 at 848 1/4, 12 off the high and 8 up from the low. March Wheat closed down 8 3/4 at 860 1/2. This was 7 1/2 up from the low and 11 off the high.

Chicago wheat traded lower throughout today's session but was able to climb off session lows to end the day. KC and Minneapolis wheat ended the day weaker as well.

The wheat market saw a brief period of support this morning on news that a large US investment back reiterated its $10.25 price target for wheat by the end of this year.

The bank also said they estimate global wheat production at 648 million tonnes vs. the current USDA forecast of 653.

Additional support was added after reports surfaced that the farm ministry in the United Kingdom lowered their wheat production estimate to 13.31 million tonnes which is down 12.8 per cent from last year and yields fell to a 23 year low due to detrimental weather and disease.

Export tenders are beginning to hit the market once again as prices trend lower. Iraq issued a tender to buy 50,000 tonnes of wheat with the US included in its acceptable origins.

Algeria has also issued a tender for 50,000 tonnes of milling wheat for December shipment. Export inspections for the week ending October 11th disappointed the market with only 7 million bushels reported.

Inspections needed each week to reach this year's USDA forecast are 24.75 million bushels.

December Oats closed down 4 at 388. This was 3 1/2 up from the low and 4 1/2 off the high.


Daily Crop Report - Copyright � 2008 CME. All rights reserved.


TheCropSite News Desk

Our Sponsors

Partners


Seasonal Picks

Country Dance