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CME: Corn Futures Closed Unchanged Wednesday

03 October 2013

US - December Corn finished unchanged at 439, 2 off the high and 4 up from the low. March Corn closed unchanged at 451 3/4. This was 3 3/4 up from the low and 2 off the high.

December corn managed to close higher on the session after first posting a new low for the move. Short-covering support helped to pull the market higher as strength in corn and meal and a much more positive tone for commodity markets in general helped to support.

The market was down early on production concerns but a drop in the US dollar and a jump in gold and energy prices may have sparked some short-covering.

Talk of enormous yields and ideas that production and ending stocks could increase in next week's USDA update helped to pressure.

Ideas that the market is oversold and that fund traders have pressed the short side in the past few sessions helped to pressure.

Open interest was up a total of 26,051 contracts in the last two trading sessions as the market collapsed near 27 cents. Israel bought 40,000 tonnes of corn at their tender and European traders believe the source will be Ukraine.

Ethanol production for the week ending September 27th averaged 875,000 barrels per day. This is up 5.2% from the previous week and up 11.5% from last year. Total Ethanol production for the week was 6.125 million barrels.

Corn used in last week's production is estimated at 91.88 million bushels and compared with an average of 94.4 million bushels per week necessary to reach the USDA projection for the year. Stocks were 15.5 million barrels.

This is down 0.67% vs. last week and down 17.5% vs. last year. Traders see hefty rain totals in the 5-day forecast as a reason to suspect and least a slow down in harvest.

If the USDA reports export sales tomorrow (this would only happen if government shut-down resolved today), traders see weekly sales near 600,000 tonnes as compared with 348,200 tonnes necessary each week to reach the USDA projection for the year.

November Rice finished unchanged at 14.975, 0.015 off the high and equal to the low.

Soy Futures Closed Higher

November Soybeans finished up 5 3/4 at 1273 3/4, 8 1/4 off the high and 10 up from the low. January Soybeans closed up 5 3/4 at 1275 3/4. This was 9 3/4 up from the low and 7 3/4 off the high.

December Soymeal closed up 8.4 at 411.7. This was 10.0 up from the low and 0.9 off the high.

December Soybean Oil finished down 0.89 at 39.38, 0.95 off the high and 0.18 up from the low.

November soybeans closed slightly higher on the day but saw choppy to lower trade for much of the day after posting highs for the day near the pit opening.

Solid gains in meal were offset by weakness in oil and some long liquidation selling. The market was just a few cents higher on the day ahead of the pit opening but a turn up in wheat and gold plus talk of the short-term oversold condition of the market helped to support a rally to 1282 which filled the gap from yesterday.

News that the EU Commission has submitted a final proposal for anti-dumping duties against imports of bio-diesel from Argentina and Indonesia helped drive rapeseed sharply higher on the day in Europe and this may have helped provide some support.

Firm meal basis in South America helped to support the rally. A drop in the US dollar and a jump in energy prices added to the positive tone. More talk of better than expected yields in the US and fears that fund traders will continue to liquidate long positions in the days ahead helped to limit the advance.

Meal surged higher on a lack of deliveries, talk of increased demand for US meal to Europe and ideas that Argentina crush could remain slow.

The turn up in meal, weakness in palm oil and talk of a record Canadian canola crop helped to drive December oil down more than 100 points on the day. December oil is down as much as 7.4% in just four trading sessions.

If the USDA reports export sales tomorrow (this would only happen if government shut-down resolved today), traders see weekly sales for soybeans near 950,000 tonnes as compared with just 233,900 tonnes necessary each week to reach the USDA projection for the year.

Wheat Futures Closed Higher

December Wheat finished up 4 3/4 at 686, 3 3/4 off the high and 8 up from the low. March Wheat closed up 4 1/4 at 693 3/4. This was 7 3/4 up from the low and 3 3/4 off the high.

December Chicago wheat closed moderately higher on the day with support from Kansas City hard red wheat as the clear leader to the upside in the past week. December Kansas City wheat closed higher for the 8th session in a row and pushed up to the highest level since mid-June.

Talk of tightening hard red winter wheat ending stocks plus weather issues in Argentina and Black Sea region has helped to support the advance.

A drop in the US dollar and strength in soybeans, gold and energy prices added to the positive tone.

If the USDA reports export sales tomorrow (this would only happen if government shut-down resolved today), traders see weekly sales near last week's total of 620,200 tonnes as compared with 336,200 tonnes necessary each week to reach the USDA projection for the year.

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

 


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