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CME: Corn Futures Closed Higher Thursday

03 May 2013

US - May Corn finished up 15 3/4 at 697 1/2, 1 3/4 off the high and 18 1/4 up from the low. July Corn closed up 14 3/4 at 661 1/2. This was 16 1/2 up from the low and 1 1/4 off the high.

May and July corn trade sharply higher on the day as a winter storm system moves across areas of KS, NE, IA, and MN dropping a mixture of rain, snow, and ice.

The unusual weather event stopped planting for most areas east of Illinois but traders indicated some work was being done in Ohio today.

Good export sales this morning and strong interior basis levels are helping to support calendar spreads throughout the day.

Net weekly export sales came in at 329,300 tonnes for the current marketing year and 656,000 for the next marketing year for a total of 985,300. Old crop sales came in above last week's data and total sales fell in line with market estimates.

As of April 25th, cumulative sales stand at 82.5% of the USDA forecast vs. a 5 year average of 87.5%. Sales of 194,000 tonnes are needed each week to reach the USDA forecast, down from 200,700 tonnes the week prior.

Farmers are hoping to get back in the fields next week in the west but forecasts remain mixed which is adding support to the market.

July Rice finished down 0.02 at 15.25, 0.06 off the high and equal to the low.

Soy Futures Closed Higher

May Soybeans finished up 3 1/2 at 1441, 13 1/4 off the high and 5 1/4 up from the low. July Soybeans closed down 3/4 at 1372 1/4. This was 4 1/4 up from the low and 11 off the high.

July Soymeal closed up 1.8 at 406.2. This was 2.3 up from the low and 2.7 off the high.

July Soybean Oil finished down 0.36 at 48.49, 0.58 off the high and 0.15 up from the low.

The soybean market ended the day mixed with the May contract gaining on the July after no deliveries were reported overnight.

November soybeans traded lower. Net weekly export sales for soybeans came in at -109,800 tonnes for the current marketing year and 1,341,100 for the next marketing year for a total of 1,231,300.

Total sales were viewed as positive but China canceled 276,300 tonnes of old crop purchases which help to offset the upside advance. Some of the tonnage was offset by purchases by Mexico and Indonesia.

This was the second consecutive reporting period in which China reported a cancelation of tonnage further narrowing the cumulative sales pace to the cumulative shipment pace. As of April 25th, cumulative sales stand at 99% of the USDA forecast vs. a 5 year average of 94%.

Sales of 24,000 tonnes are needed each week to reach the USDA forecast, up from 17,600 the week prior.

Net meal sales came in at 93,200 tonnes for the current marketing year and 55,700 for the next marketing year for a total of 148,900. Cumulative meal sales stand at 102% of the USDA forecast vs. a 5 year average of 76%.

Net oil sales came in at a sluggish 1,100 tonnes for the current marketing year and cumulative oil sales stand at 80% of the USDA forecast vs. a 5 year average of 71%. Sales of 9,000 tonnes are needed each week to reach the USDA forecast.

Soybean oil traded lower today and Malaysian palm oil fell to a fresh 1 week low overnight which added pressure to the market. Soybean oil remains a steep premium to palm oil in the world market and with Argentina crush picking up; export demand may slow further for the US.

Wheat Futures Closed Higher

May Wheat finished up 8 1/4 at 718 3/4, equal to the high and 9 1/2 up from the low. July Wheat closed up 7 1/2 at 728 1/2. This was 10 3/4 up from the low and 1 1/2 off the high.

Chicago and Kansas City wheat traded higher today, mostly following corn to the upside on poor planting conditions in the western plains.

Areas of KS, NE, and IA saw 28-35 degree temperatures with a mixture of freezing rain and snow. Temperatures will dip lower again tonight putting the KC crop at risk of additional damage. The US Dollar was sharply higher as the Euro sank lower due to an ECB interest rate cut, which was expected.

Net weekly export sales came in at 219,200 tonnes for the current marketing year, up from 71,700 the week prior and 497,300 tonnes were reported for the next market year for a total of 716,500.

The surge in new crop sales helped to push the report above market estimates. As of April 25th, cumulative sales stand at 95% of the USDA forecast vs. a 5 year average of 95.5%.

Sales of 259,000 tonnes are needed each week to reach the USDA forecast, up from 253,100 the week prior.

The European Union grated 35,527 tonnes of wheat for import this week in which 14,500 tonnes were awarded to the US.

They also granted 318,000 tonnes of soft wheat for export, taking the marketing year total to 16.9 million tonnes as compared with 11.5 million in the 2011/12 marketing year.

July Oats closed up 6 at 386 1/4. This was 6 up from the low and 4 1/2 off the high.


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