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CME: Corn Futures Closed Higher Thursday

04 October 2013

US - December Corn finished up 1/4 at 439 1/4, 4 1/2 off the high and 1 1/4 up from the low. March Corn closed up 1/4 at 452. This was 1 up from the low and 4 1/2 off the high.

December corn managed to close slightly higher on the day but well off of the mid-session peak. Trade sentiment remains very weak as traders see higher than expected yield reports and lots of harvest pressure ahead.

A wet weather forecast has increased talk of a slower harvest ahead and this provided some early support to the market but low volume and a lack of much follow-through buying after the early spurt higher may have convinced shorts to hold tight.

After seeing open interest push up sharply in the last three trading sessions, some shorts appear nervous over potential short-covering as the harvest comes to a halt in the northern and western parts of the Midwest.

Some snow is also expected to slow harvest. Strength in the other grains added to the positive tone early and a sharp break in the US dollar was also seen as positive.

Some talk that lower prices recently might spark some increased demand was also seen as a positive. The Buenos Aires Grain exchange lowered their corn planted area estimate to 3.46 million hectares from 3.56 million previous as dryness in some areas has discouraged producers.

November Rice finished down 0.075 at 14.9, 0.09 off the high and equal to the low.

Soy Futures Closed Higher

November Soybeans finished up 14 1/2 at 1288 1/4, 1 1/2 off the high and 17 1/4 up from the low. January Soybeans closed up 13 1/4 at 1289. This was 16 1/2 up from the low and 1 off the high.

December Soymeal closed up 3.6 at 415.3. This was 4.5 up from the low and 4.5 off the high.

December Soybean Oil finished up 0.89 at 40.27, 0.09 off the high and 0.9 up from the low.

November soybeans closed sharply higher on the day and now much off of the highs. Meal closed well off of the highs and wheat saw some late weakness but new highs late in the day for oil helped to support.

A lack of news flow from the USDA helped to keep the trade slow and volume was thought to be light. The outlook for heavy rains in the northern and western Corn Belt plus some snow for Western South Dakota and Nebraska helped to support the bounce.

December meal jumped nearly $5.00 into the mid-session as traders see improved demand for US meal with talk of slower crush in Argentina helping to support.

Cash meal values are improving in South America due to Argentina tightness and lengthy port delays for buyers of Brazil meal.

December oil closed sharply higher on the day and even managed to take out yesterday's highs late in the session. Cash soybean bids for the Midwest stayed firm due to weather issues and continued slow selling from producers.

Wheat Futures Closed Higher

December Wheat finished up 3 1/4 at 689 1/4, 9 3/4 off the high and 4 1/4 up from the low. March Wheat closed up 3 1/4 at 697. This was 3 3/4 up from the low and 55 off the high.

December wheat closed slightly higher on the day but down nearly 10 cents from the mid-session peak as late selling emerged to pressure.

The rally pushed the market to the highest level July 12th and the market has seen a higher close for 8 of the past 9 trading sessions but the market could not push through 700.

December Kansas City wheat closed just 1 cent higher on the day which pushes the string of higher closes to 9 days in a row.

However, the close was 9 1/4 cents off of the highs. The rally pushed the market up to the highest level since June 7th.

The EU granted export licenses for 746,000 tonnes of wheat for their weekly update, the biggest weekly total so far this season.

Traders believe US wheat demand is also strong and that the market is still seeing some speculative short-covering. Weakness in the US dollar added to the positive tone.

December Oats closed up 3 1/4 at 317. This was 3 3/4 up from the low and 2 off the high.

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