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CME: Corn Futures Closed Higher Wednesday

26 September 2013

US - December Corn finished up 6 at 454 3/4, 2 off the high and 6 1/2 up from the low. March Corn closed up 5 3/4 at 467 1/4. This was 6 1/2 up from the low and 2 1/4 off the high.

December corn closed 6 cents higher on the day and managed to stay inside of yesterday's range. Strength in wheat and short-covering seemed to be the most positive forces for the day.

The market was lower on the day into the pit opening but was trading near 3 1/2 cents higher on the day into the mid-session.

A surge higher in wheat helped to support the market as speculators hold a near record high net short position in corn and trade sentiment remains very negative.

The short-term weather appears a little drier for the Midwest which is seen as a bearish force but extended models now show a possible freeze for parts of the northwestern Corn Belt which might nick some of the late planted crops but will not be seen as much of an issues.

Talk of high wheat prices in China and ideas that Argentina wheat producers saw, or will see, frost damage this week helped to support the buying in wheat. Ethanol production for the week ending September 20th was down 0.72% vs. last week and up 2.84% vs. last year.

Total Ethanol production for the week was 5.824 million barrels but with the jump in imports to the highest level since early August and with a sharp drop in stocks, implied ethanol demand for the week reached the highest level since June 28th.

Corn used in last week's production is estimated at 87.36 million bushels as compared with 94.3 million bushels per week needed to meet this crop year's USDA estimate of 4.9 billion bushels. Stocks were 15.6 million barrels. This is down 3.5% vs. last week and down 18.9% vs. last year.

November Rice finished down 0.005 at 15.48, 0.02 off the high and equal to the low.

Soy Futures Closed Higher

November Soybeans finished up 9 1/4 at 1321 3/4, 6 1/4 off the high and 15 1/4 up from the low. January Soybeans closed up 9 1/4 at 1324. This was 15 up from the low and 6 off the high.

December Soymeal closed up 4.8 at 417.1. This was 6.0 up from the low and 2.3 off the high.

December Soybean Oil finished unchanged at 42.09, 0.31 off the high and 0.18 up from the low.

November soybeans closed 9 1/4 cents higher on the session and up 15 1/4 cents from the session lows. The market was trading 2 cents lower into the mid-session but expanded the daily range to 21 1/2 cents as strength in wheat and corn was enough to provide some support.

Strength in the other grains and news of export demand helped to provide a boost as well. Talk of increased harvest pressure ahead and concerns over long liquidation selling from funds ahead of the USDA reports on Monday may have been a factor to limit the advance as short-term weather forecast turned a little drier.

Private exporters reported the sale of 140,000 tonnes of US soybeans to unknown destination. December closed $4.80 higher on the day and December oil closed unchanged on the day and up from the early lows which were at the lowest trade since August 9th.

Traders see weekly export sales for the morning to show sales of 2.3-2.8 million tonnes as compared with 923,300 tonnes last week and just 284,900 tonnes necessary each week to reach the USDA export projection for the year.

Wheat Futures Closed Higher

December Wheat finished up 12 1/4 at 670 1/2, 4 1/2 off the high and 13 up from the low. March Wheat closed up 12 1/4 at 680 3/4. This was 12 1/2 up from the low and 4 off the high.

December Chicago wheat closed 12 1/4 cents higher on the session and experienced the higher close since August 2nd.

More talk of high prices in China with prices up 9% since the June harvest and futures in China jumpiong to contract highs and the highest level since at least 2011 helped to spark talk of possible more import demand from China.

In addition, concerns for frost damage in Argentina this week helped to drive futures higher as well. There were rumors that Brazil may allow more wheat imports from non-South American countries if Argentina suffers more loss was also seen as a positive force.

November milling wheat futures in Paris were up 0.8% to the highest level since early September. Ideas that Russia intervention wheat buying could support prices in the region and help improve competitive pricing on future export bids was also seen as a positive force.

December KC wheat closed up 13 1/4 cents and moved to the highest level since August 26th. December Minneapolis wheat also closed 13 1/4 cents higher on the session and the market has now traded as much as 27 1/4 cents higher off of Monday's lows.

December Oats closed up 3 1/4 at 313 3/4. This was 5 1/4 up from the low and 1/2 off the high.

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