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CME: Corn Futures Closed Higher Thursday

24 May 2013

US - July Corn finished up 3 1/2 at 662, 7 3/4 off the high and 9 up from the low. December Corn closed up 4 1/4 at 534 3/4. This was 9 1/2 up from the low and 2 3/4 off the high.

Corn futures traded higher on the day but the old vs. new crop calendar spreads broke lower late in the session as soybeans tumbled off session highs into the closing bell.

Strong ethanol demand and firm basis levels across the US continue to add a supportive tilt to the old crop market. Weather is mixed into next week with rainfall favoring the northwestern Corn Belt which may delay seeding in parts if IA, MN, ND, and WI.

Lighter amounts are expected for the eastern Corn Belt which will keep planting progress going and help boost soil moisture reserves for newly planted corn. Export sales were positive for price direction but old crop sales were average at best.

Net weekly export sales came in at 104,600 tonnes for the current marketing year and 341,600 for the next marketing year for a total of 446,200. Sales were up 52% from the week prior and 57% from the 4 week average.

As of May 16th, cumulative sales stand at 90% of the USDA forecast vs. a 5 year average of 91.5%. Sales of 121,000 tonnes are needed each week to reach the USDA forecast, up from 120,000 tonnes the week prior.

The European Union cleared 138,000 tonnes of corn this week for import, bringing the marketing year total to 10 million tonnes, up from 5.3 million a year ago, and compared to the current USDA estimate of 10.5 million tonnes.

July Rice finished up 0.215 at 15.555, 0.045 off the high and 0.105 up from the low.

Soy Futures Closed Higher

July Soybeans finished up 5 1/4 at 1499 1/2, 47 1/4 off the high and 12 up from the low. November Soybeans closed up 4 1/4 at 1243. This was 10 up from the low and 6 1/4 off the high.

July Soymeal closed down 3.6 at 437.0. This was 2.5 up from the low and 14.4 off the high.

July Soybean Oil finished up 0.13 at 49.77, 0.84 off the high and 0.51 up from the low.

July soybeans traded up to 1546 3/4 today but ended the day well off its highs and settled below 1500. The July contract traded a 59 1/4 cent range and the July/November spread traded a 50 3/4 cent range today.

The July/November made a new contract high at +298 then broke to the downside to trade negative just before the closing bell but managed to settled in positive territory. Basis continued its tumble lower in the Midwest as farmers' price grain and elevators attempt to push supply to market.

Rumors that the Chinese government was forcing importers to price open purchase contracts may have supported the old crop market. Export sales were positive for old crop price direction as well. Net weekly export sales for soybeans came in at 183,500 tonnes for the current marketing year and 838,900 for the next marketing year for a total of 1,022,400.

As of May 16th, cumulative sales stand at 99.8% of the USDA forecast for vs. a 5 year average of 97%. Sales of 4,000 tonnes are needed each week to reach the USDA forecast. Net meal sales came in at 131,200 tonnes for the current marketing year and 125,400 for the next marketing year for a total of 256,600.

As of May 16th, cumulative meal sales stand at 99.5% of the USDA forecast vs. a 5 year average of 80.5%. Sales of 3,000 tonnes are needed each week to reach the USDA forecast.

Net oil sales came in at 9,600 tonnes for the current marketing year and none for the next marketing year for a total of 9,600.

As of May 16th, cumulative soybean oil sales stand at 84% of the USDA forecast vs. a 5 year average of 74.5%. Sales of 8,000 tonnes are needed each week to reach the USDA forecast.

Wheat Futures Closed Higher

July Wheat finished up 14 3/4 at 703 1/4, 5 3/4 off the high and 16 1/4 up from the low. December Wheat closed up 12 1/2 at 723. This was 14 1/4 up from the low and 5 1/2 off the high.

Wheat traded higher on the day on rumors that China may have been buying US Chicago wheat which helped to spark a short covering rally.

Outside markets had a negative tilt after some poor economic data out of China overnight and hawkish talk from the US Fed Chairman yesterday.

Export sales were positive this morning with sales for wheat at 239,000 tonnes for the current marketing year and 713,600 for the next marketing year for a total of 952,600. Sales were up 91% from the week prior and 55% from the 4 week average.

As of May 16th, cumulative sales stand at 97% of the USDA forecast vs. a 5 year average of 97.5%. Sales of 352,000 tonnes are needed each week to reach the USDA forecast, up from 317,600 tonnes the week prior.

Chicago wheat sales were estimated at 16,500 tonnes and KC at 180,100 tonnes. The European Union granted export licenses for 247,000 tonnes of soft wheat this week, taking the year to date total to 17.6 million tonnes as compared with 12 million tonnes for this time last year.

July Oats closed up 3 3/4 at 370 1/4. This was 5 1/4 up from the low and 2 off the high.


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