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CME: Corn Futures Closed Higher Thursday

27 September 2013

US - December Corn finished up 2 at 456 3/4, 1 off the high and 5 3/4 up from the low. March Corn closed up 2 1/4 at 469 1/2. This was 6 up from the low and 3/4 off the high.

December corn closed 2 cents higher on the session and managed a late day surge to push to a 4-day high.

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

Open interest pushed up to the highest level since August 22nd and this has traders believing that speculators are pressing the short side.

Talk of a drier forecast for the next 3-4 days in the Midwest helped to pressure the market into the mid-day and traders also see the extended forecast models pulling out cold weather as a bearish force. Harvest activity is expected to pick up steam over the near-term. Weekly export sales came in at 640,100 tonnes which was higher than expected.

Cumulative corn sales stand at 44.5% of the USDA forecast for 2013/2014 (current) marketing year versus a 5 year average of 38.3%. Sales of 348,000 metric tonnes are needed each week to reach the USDA forecast.

The International Grain Council lowered their world production forecast for the 2013/14 season to 943 million tonnes, down 2 million from last month.

November Rice finished down 0.16 at 15.32, equal to the high and equal to the low.

Soy Futures Closed Lower

November Soybeans finished down 5 at 1316 3/4, 6 off the high and 5 1/2 up from the low. January Soybeans closed down 5 1/4 at 1318 3/4. This was 5 3/4 up from the low and 5 3/4 off the high.

December Soymeal closed down 2.2 at 414.9. This was 1.5 up from the low and 2.4 off the high.

December Soybean Oil finished down 0.04 at 42.05, 0.13 off the high and 0.35 up from the low.

November soybeans closed 5 cents lower on the day and near the middle of the range. December soybean oil closed just slightly lower on the day and up 35 from the lows.

November soybeans managed to trade slightly higher on the day into the pit opening but traded 7 cents lower on the day into the mid-session. Solid export sales news and a further bounce in wheat helped to support the early bounce.

Excellent harvest weather forecast for the Midwest helped to pressure the market into the mid-session. Weekly export sales for soybeans came in at a whopping 2.816 million tonnes which was even higher than expected.

Cumulative sales stand at 68.9% of the USDA forecast for 2013/2014 (current) marketing year versus a 5 year average of 46.9%. Sales of just 234,000 tonnes are needed each week to reach the USDA forecast.

Meal sales showed cancellation of 60,400 metric tonnes for the old crop season and 307,100 for new crop for a total of 246,700. Cumulative soybean meal sales stand at 27.4% of the USDA forecast versus a 5 year average of 18.8%.

Sales of 116,000 tonnes are needed each week to reach the USDA forecast. Two crush plants (Kansas City and Wichita have been closed temporarily due to the slow start of harvest. Weather looks favorable for Midwest harvest ahead.

Wheat Futures Closed Higher

December Wheat finished up 7 3/4 at 678 1/4, 3/4 off the high and 9 3/4 up from the low. March Wheat closed up 7 1/2 at 688 1/4. This was 9 1/4 up from the low and 3/4 off the high.

December Chicago wheat closed 7 3/4 cents higher on the session and experienced the highest close since July 16th.

The market is now up as much as 40 1/2 cents from last week's lows as traders see further damage to Argentina wheat crop due to weather. Kansas City and Minneapolis wheat markets were also moderately higher on the day.

Ideas that the active feeding for livestock for the June-August time frame could spark a bullish surprise for the stocks report on Monday helped to support the market. Weekly export sales came in at 620,200 metric tonnes which was a little higher than expected.

Cumulative wheat sales stand at 59.1% of the USDA forecast for 2013/2014 (current) marketing year versus a 5 year average of 48.8%. Sales of just 336,000 tonnes are needed each week to reach the USDA forecast.

The International Grain Council raised their world production forecast for the 2013/14 season to 693 million tonnes, up 2 million from last month.

December Oats closed up 4 3/4 at 318 1/2. This was 4 up from the low and 1 off the high.


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