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CME: Corn Futures Closed Lower Tuesday

22 May 2013

US - July Corn finished down 9 1/2 at 640, 7 off the high and 7 1/2 up from the low. December Corn closed down 1 1/2 at 518 3/4. This was 6 3/4 up from the low and 2 3/4 off the high.

July corn led the market lower today with the September contract following to the downside. The December contract traded lower for most of the day but saw moderate support as traders took profits in old vs. new crop calendar spreads for the second day in a row.

The new crop corn market leans negative for price direction after farmers planted a record amount of corn last week with many areas seeing light showers overnight which should add to the already favorable soil moisture profiles for many areas.

Cash basis levels remain relatively firm across the Corn Belt with cash offers quoted near or just above $7 with ethanol processors holding the most aggressive offers.

Traders noted that producer sales had picked up today after many have their new crop corn and soybean crop in the ground.

Some expect total corn plantings to be near 90% complete by next week at which point the market will turn its focus to the weather patterns in June/July.

July Rice finished up 0.005 at 15.18, 0.02 off the high and equal to the low.

Soy Futures Closed Higher

July Soybeans finished up 13 3/4 at 1478 1/4, 1 off the high and 22 1/4 up from the low. November Soybeans closed down 4 1/4 at 1220 3/4. This was 6 1/2 up from the low and 7 1/4 off the high.

July Soymeal closed up 3.4 at 438.7. This was 7.5 up from the low and 0.5 off the high.

July Soybean Oil finished up 0.28 at 49.48, 0.22 off the high and 0.53 up from the low.

The soybean market ended the day mixed with significant support showing up in the July contract while the rest of the complex traded lower to nearly unchanged.

Cash basis in processor markets was on the defensive for most of the day as producer sales of old crop have picked up.

The July vs. November spread setback in early trade but found support midday and managed to post a new contract high at +259 3/4.

A well-followed oilseed analyst suggested overnight that US soybean imports could be reach just over 30 million bushels in the September/August period with most of the supply coming from Canada and South America.

The supplies will likely hit the east coast which should ease the tight supply situation but very little product will have the ability to move west where market conditions remain relatively tight.

Most traders are looking for crush to decline over the next couple of months. July meal traded higher today while the December contract was lower. Steady demand for old crop supply helped to support July meal. Soybean oil contracts ended the day in positive territory.

Wheat Futures Closed Lower

July Wheat finished down 4 3/4 at 680 1/2, 4 off the high and 6 1/2 up from the low. December Wheat closed down 5 at 703 1/2. This was 6 1/2 up from the low and 4 off the high.

July Chicago wheat posted a new low for the move this morning but managed to find some moderate buying support midday to take the market off the lows of the session.

Kansas City and Minneapolis wheat extended their premium to Chicago despite a more favorable outlook for rainfall in the western plains over the next 2 weeks and a drier forecast for the northern plains which should promote better planting progress.

European wheat futures slid to an 11 month low overnight on favorable weather forecasts that hint at a stable supply outlook in 13/14.

Algeria issued a tender to buy 50,000 tonnes of optional-origin wheat for August shipment but recent tenders suggest the purchase amount will be much larger.

France has been the top supplier in the last marketing year to Algeria and the tender should give a good indication to the market as to how the international offer spreads are setting up for the new crop delivery period.

The Black Sea and France look to be the front runners for the business according to some traders. Jordan made no purchase in their 150,000 tonne tender overnight.

July Oats closed down 8 1/4 at 355. This was 3 up from the low and 7 off the high.

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