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CME: Corn Futures Closed Higher Wednesday

19 September 2013

US - December Corn finished up 2 1/4 at 456 1/4, 3/4 off the high and 4 1/4 up from the low. March Corn closed up 2 1/4 at 468 3/4. This was 4 1/4 up from the low and 1 off the high.

December corn saw some late short-covering from funds to move from lower to higher on the day right into the close. News that there were no immediate plans for tapering by the Fed sparked aggressive buying in many commodity markets and a sharp drop in the US dollar.

The risk-on vibe helped to support fund buying and short-covering into the close. The market was traded down near 1 1/2 cents on the day into the mid-session. At just 5 cents, the range of the day was very small.

A bounce in wheat and soybeans helped to provide some support but continued talk of more ample supply this season and talk that harvest is picking up steam helped to pressure. Wire reports indicate that China imports of US distiller Grain could reach a record high over the next year due to big corn harvest.

China imported 369,096 tonnes of DDG's in July, up 24.6% from last year. Ethanol production for the week ending September 13th reached 5.866 million barrels. Corn used in last week's production is estimated at 87.99 million bushels as compared with average weekly usage of 94.17 million bushels needed to reach the USDA projection for the 2013/14 season.

Stocks were at 16.178 million barrels which is down 0.56% vs. last week and down 16.3% vs. last year. Imports were the lowest since June 28th.

The 6-10 and 8-14 day forecast models show above normal temperatures all the way out to October 1st for central and northern Corn Belt states and this helps reduce fears of crop damage from an early freeze event.

Traders see weekly export sales for tomorrow morning near 550,000 tonnes from 332,600 tonnes last week.

November Rice finished up 0.08 at 15.61, equal to the high and 0.11 up from the low.

Wheat Futures Closed Higher

December Wheat finished up 3 1/2 at 646 1/2, 1 1/2 off the high and 4 1/2 up from the low. March Wheat closed up 4 at 657 1/2. This was 5 1/4 up from the low and 1 off the high.

Wheat futures all closed higher on the day with Chicago December wheat up more than 3 cents on the day.

Minneapolis December wheat closed higher on the day after positing a contract low and the reversal might attract some technical buying. The lack of tapering by the Fed sparked a "risk-on" vibe for commodity markets and this helped support buying into the close.

The sharp break in the US dollar Wheat futures were already up a few cents on the day into the mid-session in quiet trade and the market saw an inside trading session. Paris wheat was slightly higher following the US markets.

Choppy trade in the other grains has helped to hold wheat in the current trading range but wheat continues to gain on corn. Talk that acreage may be adjusted lower due to FSA data yesterday and ideas that demand for US wheat from Brazil could remain strong has helped to support.

Weather globally is seen as a negative force and recent heavy rains for the central and southern plains has been seen as a negative factor for KC wheat. Traders see weekly export sales for tomorrow morning near 575,000 tonnes from 543,900 tonnes last week.

December Oats closed down 3 at 303 3/4. This was 3/4 up from the low and 5 1/2 off the high.

Soy Futures Closed Higher

November Soybeans finished up 5 1/4 at 1347 3/4, 2 1/4 off the high and 12 3/4 up from the low. January Soybeans closed up 7 1/4 at 1350 1/4. This was 14 1/2 up from the low and 1 3/4 off the high.

December Soymeal closed down 0.8 at 425.8. This was 3.0 up from the low and 2.7 off the high.

December Soybean Oil finished up 0.47 at 42.71, 0.09 off the high and 0.68 up from the low.

November soybeans closed slightly higher on the day with an inside trading session but this was still the second lowest close since August 23rd. The market traded both sides of unchanged early in the day and the close was near the highs of the day.

News of China import demand and ideas that yield and acreage could come down for the October USDA update helped to hold the market above yesterday's lows. Private exporters reported the sale of 1.93 million tonnes of soybeans to China for the 2013/14 marketing year and 182,000 tonnes of US soybeans to unknown destination.

The China sale is the 5th largest sale on record. With the low Brazil currency, strong global demand for soybeans and slower than expected demand from Brazil end users of feed and vegoil due to the high global soybean values, Brazil crush for soybeans for the February to July time frame has reached just 20.8 million tonnes, down 7% from last year's pace and down even with a record high crop.

Indonesia plans to scrap 5% import duty on soybeans temporarily to ease some tightness there which is seen as a positive for global soybean prices.

December soybean oil traded down to the lowest level since August 12th before closing sharply higher on the day and up 69 from the early lows. December meal closed slightly lower on the day. Traders see weekly export sales for soybeans for tomorrow morning near 700,000 tonnes from 478,100 tonnes last week.

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