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CME: Corn Futures Closed Higher Thursday

09 August 2013

US - September Corn finished up 5 1/4 at 473 1/2, 2 off the high and 5 1/2 up from the low. December Corn closed up 1 1/2 at 459 3/4. This was 2 3/4 up from the low and 4 1/2 off the high.

Corn futures edged higher midday, led by gains in the September contract but the market ended up trading both sides of the unchanged the rest of the session.

The session range was rather narrow as traders positioned ahead of the weekend and next Monday's report.

Volume was average at best. Basis inched higher in the western Corn Belt on strong feed demand although traders indicated that cash markets in the southeast have a softer tone as feeders seem content with grain coverage for now.

Net weekly export sales came in at 290,100 tonnes for the current marketing year and 220,900 for the next marketing year for a total of 511,000. Japan was a notable buyer in the last week.

As of August 1st, cumulative sales stand at 29% of the USDA forecast for 2013/2014 versus a 5 year average of 20%.

Sales of 397,000 tonnes are needed each week to reach the USDA forecast. New crop sales took a significant step backwards from the 1 million tonnes sold last week but the overall sales pace suggests the USDA has plenty of evidence to adjust export demand higher from 1.25 billion bushels in 13/14.

September Rice finished down 0.065 at 15.28, 0.14 off the high and 0.04 up from the low.

Soy Futures Closed Higher

August Soybeans finished up 28 at 1355 3/4, 2 1/4 off the high and 27 3/4 up from the low. November Soybeans closed up 18 1/2 at 1184 1/4. This was 19 1/2 up from the low and 5 3/4 off the high.

August Soymeal closed up 22.2 at 422.5. This was 21.8 up from the low and 1.5 off the high.

August Soybean Oil finished up 0.01 at 41.65, 0.29 off the high and 0.02 up from the low.

The soybean market ended the day higher, led by gains in calendar spreads and the interior soybean and meal basis.

Export sales had a mixed bias with soybeans within the trader estimate range while meal and oil came in lower. Net weekly export sales came in at 79,400 tonnes for the current marketing year and 1,017,600 for the next marketing year for a total of 1,097,000.

Old crop sales were up only 1% from last week but up 29% from the 4-week average. As of August 1st, cumulative sales stand at 40.5% of the USDA forecast for 2013/2014 versus a 5 year average of 27.5%. Sales of 414,000 tonnes are needed each week to reach the USDA forecast, down from 424,900 the week prior.

Net meal sales came in at 66,700 tonnes for the current marketing year and 68,900 for the next marketing year for a total of 135,600.

Cumulative sales stand at 103% of the USDA forecast for 2012/2013 versus a 5 year average of 92%. Old crop meal sales were up from the week prior but down 1% from the 4-week average.

Soybean oil says were disappointing with only 300 tonnes reported for the current marketing year and 2,200 for the next marketing year for a total of 2,500. The trade was looking for sales near 7,500 tonnes.

Sales stand at 91% of the USDA forecast for 2012/2013 versus a 5 year average of 88.7%. Sales of 10,000 tonnes are needed each week to reach the USDA forecast.

The US Dollar traded sharply lower today while the Euro and Yen pushed higher. This might have added some macro-market support following the positive trade data released by China overnight.

Wheat Futures Closed Lower

September Wheat finished down 2 1/4 at 641 1/4, 6 3/4 off the high and 1 1/2 up from the low. December Wheat closed down 2 1/2 at 653 3/4. This was 1 3/4 up from the low and 6 1/2 off the high.

The wheat bulls continued their struggle this week as traders unwound long wheat vs. short corn spreads ahead of next Monday's USDA report.

Export sales were impressive this morning and the demand trend in this area continues to be a bullish development. Net weekly export sales came in at 726,200 tonnes for the current marketing year and no sales were reported for the next marketing year.

Sales were up 22% from the previous week but down 22% from the 4-week average. As of August 1st, cumulative sales stand at 46.5% of the USDA forecast for 2013/2014 versus a 5 year average of 34.5%. Sales of 360,000 tonnes are needed each week to reach the USDA forecast, down from 368,400 the week prior.

The data set was supportive for market direction and came within the trader estimated range. Kansas City sales were exceptional at almost 410,000 tonnes while Chicago sales came in at an unimpressive 49,700 tonnes.

Demand for high protein, milling quality wheat out of the US remains an extremely strong demand influence on the market.

Cash basis inched higher for KC wheat midday and the Sept/Dec spread continues to narrow its carry which is a bullish fundamental factor.

It was also reported that Japan bought 175,277 tonnes of food wheat from the US, Canada, and Australia overnight but this business is rather common.

September Oats closed up 9 3/4 at 362. This was 10 up from the low and 3/4 off the high.


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