TheCropSite.com- news, features, articles and disease information for the crop industry

News

CME: Corn Finished Up on Friday

09 September 2013

US - December Corn finished up 7 1/4 at 468 1/4, 3/4 off the high and 8 up from the low. March Corn closed up 7 at 481. This was 8 1/4 up from the low and 1/2 off the high.

The market traded steady today with minor weakness in the Sept contract early on due to some softer basis levels in the interior of the US and December corn traded both sides of the unchanged but finished higher on the day. Harvest continues to roll forward across the Corn Belt which leans negative for market direction as demand channels begin to refill with supply. Export sales indicated a slowdown in demand over the last week with old crop sales showing a net cancelation of 113,200 tonnes, new crop sales at 328,300 tonnes, for a total of 215,100. This was below market estimates and was the last reporting period for the 2012/13 crop year.

As of August 29th, cumulative sales stand at 37% of the USDA forecast for 2013/2014 versus a 5 year average of 33%. Sales of 372,000 tonnes are needed each week to reach the USDA forecast. Columbia sales declined by 85,000 tonnes in the old crop period and 137,200 tonnes of sales were reported for the new crop year to an unknown destination. South Korea was in the market overnight for corn and purchased 60,000 tonnes that can be sourced from anywhere in the world. A well-known private grains analyst estimated the US corn yield for 2013/14 at 157.2 bushels per acre, down from their prior forecast of 158.6, but up from the August USDA forecast of 154.4. Production was estimated at 14.013 billion bushels, down from 14.14 previously and up from the current USDA forecast of 13.763. The data was released as estimates for next week's USDA report and pressured the market.

November Rice finished down 0.215 at 15.41, equal to the high and equal to the low.

Soybean

November Soybeans finished up 1/4 at 1367 3/4, 9 3/4 off the high and 12 1/4 up from the low. January Soybeans closed up 1 at 1365 1/4. This was 12 up from the low and 9 1/4 off the high.

December Soymeal closed down 0.5 at 428.9. This was 6.2 up from the low and 4.0 off the high.

December Soybean Oil finished up 0.19 at 43.72, 0.74 off the high and 0.22 up from the low.

The soybean market traded both sides of the unchanged with early strength and midday weakness. Export sales were supportive for the new crop year but weather and an uncertain supply outlook was the main focus for the market heading into the weekend. Net weekly export sales for soybeans came in at 5,000 tonnes for the current marketing year and 844,100 for the next marketing year for a total of 849,100.

As of August 29th, cumulative sales stand at 54.5% of the USDA forecast for 2013/2014 versus a 5 year average of 40%. Sales of 326,000 tonnes are needed each week to reach the USDA forecast. Net meal sales came in at 57,800 tonnes for the current marketing year and 84,300 for the next marketing year for a total of 142,100. Cumulative meal sales stand at 106% of the USDA forecast for 2012/2013 versus a 5 year average of 94.5%. Net oil sales came in at 9,200 tonnes for the current marketing year and there was a cancelation of 2,400 for the next marketing year.

Cumulative oil sales stand at 94% of the USDA forecast for 2012/2013 versus a 5 year average of 92.5%. Sales of 13,000 tonnes are needed each week to reach the USDA forecast. A well-known private grains analyst estimated the US soybean yield for 2013/14 at 42.4 bushels per acre, down from their prior forecast of 42.7, and compared to the August USDA forecast of 42.6. Production was estimated at 3.239 billion bushels, down from 3.266 previously and compared to the current USDA forecast of 3.255. The data was released as estimates for next week's USDA report but traders noted the yield look optimistic given the weather in August and other private forecasts this week that pegged the yield near 41.

Wheat

December Wheat finished up 7 1/2 at 647 3/4, 5 1/4 off the high and 9 1/2 up from the low. March Wheat closed up 7 at 660 1/4. This was 9 1/2 up from the low and 5 1/2 off the high.

Wheat futures traded higher on the day and led the grain markets to the upside for a good part of the session. Traders noted heavy bull spreading in the December Chicago wheat vs. December corn spread. Positive export sales data plus thoughts that wheat futures were becoming a bit oversold ahead of the weekend prompted buying support as well. Net weekly export sales came in at 668,400 tonnes for the current marketing year and 79,000 for the next marketing year for a total of 747,400.

Sales were up a whopping 21% from the previous week and 18% from the 4 week average. Kansas City sales were extremely impressive at 409,600 tonnes, 187,000 of which went to Brazil. Even Chicago wheat sales improved with 168,100 tonnes reported. Mexico and Indonesia were noted buyers last week.

As of August 29th, cumulative sales stand at 53% of the USDA forecast for 2013/2014 versus a 5 year average of 43%. Sales of 358,000 tonnes are needed each week to reach the USDA forecast. Minneapolis spring wheat sales were only 27,700 tonnes which was viewed as highly disappointing. Egypt only bought one cargo from the Black Sea in their latest tender which was the 4th in the last 2 weeks. The trade was looking for much more but seeing them back in the market kept the bears on their toes. Statistics Canada reported that all wheat stocks for Canada decreased to 5.1 million tonnes, near market estimates, and down from 5.9 million a year ago.

December Oats closed down 6 at 319 1/2. This was 3 1/4 up from the low and 7 1/2 off the high.


Daily Crop Report - Copyright � 2008 CME. All rights reserved.


TheCropSite News Desk

Our Sponsors

Partners


Seasonal Picks

Country Dance