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CME: Corn Futures Closed Lower Thursday

19 April 2013

US - May Corn finished down 16 at 644 1/2, 20 off the high and 1 1/2 up from the low. July Corn closed down 11 1/2 at 629 3/4. This was 1 1/4 up from the low and 15 1/4 off the high.

May and December corn traded lower on the day and softer basis levels in the eastern Corn Belt helped to spark the move lower in the nearby contract along with profit taking in the May/July calendar spread.

The US Corn Belt saw heavy rainfall overnight and the trend will continue into tomorrow which will provide a solid soil moisture foundation for planting. Modest support in new crop contracts was seen today on concerns that planting delays will continue in North Dakota and Minnesota which may force farmers to switch from corn and into soybeans.

Export sales were positive to market direction this morning but traders sold into the news and technical levels were taken out to the downside which added momentum. Net weekly export sales came in at 400,300 tonnes for the current marketing year and 16,900 for the next marketing year for a total of 417,200.

As of April 11th, cumulative sales stand at 79% of the USDA forecast for the current marketing year vs. a 5 year average of 84%. Sales of 206,000 tonnes are needed each week to reach the USDA forecast.

May Rice finished down 0.155 at 15.375, 0.135 off the high and equal to the low.

Soybeans

May Soybeans finished up 8 1/4 at 1430 1/2, 11 off the high and 11 1/2 up from the low. July Soybeans closed up 10 at 1390. This was 14 3/4 up from the low and 9 3/4 off the high.

May Soymeal closed up 3.7 at 411.0. This was 4.1 up from the low and 6.2 off the high.

May Soybean Oil finished up 0.27 at 49.66, 0.42 off the high and 0.56 up from the low.

May soybeans traded higher into the closing bell but closed well off session highs from early this morning. Bull spreads worked to the upside again today on tight crush supply pipelines in the US and Argentina. Meal demand remains strong and export sales were supportive to the oilseed market today.

Net weekly export sales for soybeans came in at 339,400 tonnes for the current marketing year and 227,400 for the next marketing year for a total of 566,800 tonnes. As of April 11th, cumulative sales stand at 99.7% of the USDA forecast for the current marketing year vs. a 5 year average of 91%. Sales of 5,000 tonnes are needed each week to reach the USDA forecast; this is down from 20,700 tonnes the week prior.

The USDA announced this morning that China bought 252,000 tonnes of US soybeans for the 2013/14 marketing year. China continues to be an active buyer for the new crop marketing year as it attempts to build their strategic reserves. Net meal sales came in at 266,000 tonnes for the current marketing year and 49,200 for the next marketing year for a total of 315,200.

As of April 11th, cumulative meal sales stand at 99% of the USDA forecast vs. a 5 year average of 73%. Sales of 4,000 tonnes are needed each week to reach the USDA forecast, down from 14,000 tonnes the week prior.

Crush capacity is set to slow down by the end of this month and into early April which has prompted concern on where global buyers will fill their meal needs if Argentina crush supply does not pick up soon. Net oil sales came in at 8,200 tonnes for the current marketing year and cumulative oil sales stand at 80% of the USDA forecast vs. a 5 year average of 68%. Sales of 9,000 tonnes are needed each week to reach the USDA forecast.

Wheat

May Wheat finished down 1 at 702 3/4, 9 1/4 off the high and 6 3/4 up from the low. July Wheat closed down 1/2 at 706 3/4. This was 6 1/2 up from the low and 8 3/4 off the high.

Chicago and KC wheat traded lower on the day despite explosive export sales data this morning. Net weekly export sales came in at 552,100 tonnes for the current marketing year and a whopping 1,122,600 for the next marketing year for a total of 1,674,700 tonnes.

The data was well above market estimates and the old crop sales were over double last week's amount reported. As of April 11th, cumulative sales stand at 94% of the USDA forecast for the current marketing year vs. a 5 year average of 94%. Sales of 228,000 tonnes are needed each week to reach the USDA forecast, down from 228,200 tonnes the week prior.

The European Union granted export licenses for 392,000 tonnes of soft wheat this week, taking the total since the beginning of the 2012/13 crop year to 16.3 million tonnes as compared with the USDA estimate of 20.50 million tonnes and against year ago levels of 11.1 million tonnes.

The western plains saw another freeze event overnight which likely caused some damage to wheat in western KS and OK and this helped to support KC vs. Chicago wheat. Producers in OK suggest that some wheat fields expect to be "zeroed" out by an insurance adjuster. The poor conditions continue to add support as the market remains uncertain as to just how much production we have lost for next crop year.

May Oats closed up 2 at 388 1/2. This was 4 3/4 up from the low and 6 1/4 off the high.


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