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CME: Corn Futures Closed Higher Friday

22 April 2013

US - May Corn finished up 7 1/2 at 652, 3/4 off the high and 9 1/4 up from the low. July Corn closed up 3 1/4 at 633. This was 6 up from the low and 3 off the high.

May corn traded higher on the day in what was a mostly two-sided and choppy session. The traded range was fairly narrow as trader's positioned ahead of the weekend and monitor weather forecasts for the US Corn Belt.

The 6-10 and 8-14 day forecast looks to be cooler and drier for much of the Corn Belt. Snow will begin to melt in the Northern Plains by this weekend and into next week with flooding expected.

US FOB and CIF basis levels were firm today after it was announced that some locks on the Mississippi River will close into the weekend due to the expected flooding. The closure is temporary but is helping support the nearby spread.

December corn also saw buying support on thoughts that the current USDA planted acreage estimate of 97.3 million was unattainable due to the wet and cold spring in North Dakota and Minnesota.

A combined total of 13.1 million acres are projected to be planted between the two states with some estimating that this could fall by a million acres or more. Traders noted light volume in today's trade.

May Rice finished down 0.145 at 15.23, 0.16 off the high and equal to the low.

Soy Futures Closed Lower

May Soybeans finished down 2 1/4 at 1428 1/4, 12 3/4 off the high and 6 1/4 up from the low. July Soybeans closed down 7 1/2 at 1382 1/2. This was 2 1/2 up from the low and 18 off the high.

May Soymeal closed up 1.4 at 412.4. This was 3.9 up from the low and 2.5 off the high.

May Soybean Oil finished down 0.5 at 49.16, 0.73 off the high and 0.2 up from the low.

May soybeans traded lower on the day but the November contract was the leader to the downside as traders anticipate corn acreage to be switched over to soybeans this spring.

The cool and wet conditions in the Northern Plains have delayed planting progress and some expect the switch to be made if the weather patterns continue to keep farmers out of the fields.

The July/November calendar spread traded higher on the day but saw a modest amount of pressure as traders took profits ahead of the weekend.

Cash markets in the US remain firm with CIF and FOB basis values strong due to some locks on the Mississippi being closed this weekend because of flooding. Chinese soybean import data for March came in at 3.84 million tonnes, down from about 4.5 million that were expected.

Many traders still believe that Chinese import demand is overstated at 61 million tonnes according to the USDA, that's down from 63 million tonnes in March. Many in the trade have penciled in demand near 58 million tonnes.

Wheat Futures Closed Higher

May Wheat finished up 6 1/4 at 709, 2 3/4 off the high and 11 1/4 up from the low. July Wheat closed up 4 3/4 at 711 1/2. This was 11 1/2 up from the low and 2 1/2 off the high.

Chicago and KC wheat traded higher on the day in light volume despite another round of freezing temperatures in the western plains overnight.

Temperatures fell to 25 degrees and below for areas in eastern CO, western KS, the panhandle of OK, and southwest NE. Slight damage is expected for the crop but the trade is still uncertain as to final production losses.

Central KS has been spared so far but another couple days of below normal temperatures are expected by mid-next week for the westernmost part of the region. Chicago wheat calendar spreads traded with a bullish tilt on strong export demand.

Tunisia bought 67,000 tonnes of soft wheat on an optional origin tender this morning. International weather conditions are mostly benign with a blocking pattern showing up in the Black Sea region but this should be beneficial to areas of northern Russia and Ukraine as it will help wheat growth.

The lower Volga Valley in Russia remains dry and rainfall will be needed soon. The Russia Agriculture of Ministry announced midday that they may increase grain exports to Egypt if their total grain production reaches 95 million tonnes in 2013.

Egypt's President held talks with Russian officials recently in attempt to lock up funding and wheat in the coming year as they deal with tight domestic supplies and depleted monetary reserves.

May Oats closed up 3 1/2 at 392. This was 12 1/4 up from the low and equal to the high.


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