TheCropSite.com- news, features, articles and disease information for the crop industry

News

CME: Corn Futures Closed Lower Tuesday

23 October 2013

US - December Corn finished down 5 3/4 at 438 1/4, 6 1/4 off the high and 1 1/4 up from the low. March Corn closed down 5 3/4 at 451. This was 1 3/4 up from the low and 6 off the high.

December corn closed 5 3/4 cents lower on the session and experienced the lowest close since October 14th. Traders see active harvest selling pressures over the next week as corn harvest accelerates.

Crop conditions were rated 60% good/excellent as of Sunday from 55% at the end of September and producers continue to see better than expected yields; even for late planted crops in the north.

Corn harvest is 39% complete compared to trade expectations near 42%. Given the big improvement in the soybean harvest, the data suggests farmers chose to get done with soybeans and will move right into corn.

Expect a big jump in harvest over the next week given the favorable weather forecast. Improving crop conditions since the last update in September was also seen as a negative force. South Korea is tendering to buy 140,000 tonnes of corn and 60,000 tonnes of feedwheat.

November Rice finished up 0.025 at 15.285, equal to the high and 0.035 up from the low.

Soy Futures Closed Lower

November Soybeans finished down 1 at 1302 1/4, 3 1/4 off the high and 10 1/4 up from the low. January Soybeans closed down 3 at 1297 1/2. This was 7 1/2 up from the low and 3 1/2 off the high.

December Soymeal closed up 0.4 at 416.1. This was 5.0 up from the low and 1.4 off the high.

December Soybean Oil finished down 0.12 at 41.52, 0.28 off the high and 0.32 up from the low.

November soybeans closed slightly lower but well up from the early morning lows. The close was more than 10 cents above the lows which occurred ahead of the pit opening this morning. It was the sixth session in a row in which the market has failed to take out the previous days lows and failure to do so this morning was seen as a positive development.

A sharp drop in the US dollar and a surge in gold prices helped to provide some support as well. Traders noted bull spreading in both meal and soybeans. Palm oil recovered from overnight weakness to close higher and traders expect demand news to remain strong over the near-term. Gulf basis was steady to higher on firm demand and this may have provided some support.

Weakness in corn and ideas that harvest will remain active over the near-term were factors to pressure. Meal is still lower on the day but soyoil was slightly higher on the day and up significantly from overnight lows.

Talk of good rains in South America to help get the crop off to an early start and weakness in China futures overnight were seen as negative forces.

Wheat Futures Closed Higher

December Wheat finished up 1 at 700 3/4, 3 3/4 off the high and 4 3/4 up from the low. March Wheat closed up 1 at 710 3/4. This was 5 up from the low and 3 1/2 off the high.

December wheat closed just 1 cent higher after choppy and two-sided trade. Failure to take out Monday's reversal-day lows and some periodic fund and spec buying helped to support the bounce.

Good weather in the US helped to limit the buying but a firm tone to prices in the Black Sea region and continued concerns over Argentina tightness helped to support. Jordan bought 100,000 tonnes of milling wheat at their optional origin tender.

Ideas that Black Sea producers have been able to plant more winter wheat in the past week and talk that Argentina wheat benefited from weekend rains were factors to pressure the market this morning.

However, a firm price trend out of both of these locations seemed to provide some support. A sharp break in the US dollar with a bounce in gold were seen as positive forces as well. December Kansas City wheat closed 4 1/4 cents higher on the day.

December Oats closed up 4 3/4 at 341 1/4. This was 5 3/4 up from the low and 1 1/4 off the high.


Daily Crop Report - Copyright � 2008 CME. All rights reserved.


TheCropSite News Desk

Our Sponsors

Partners


Seasonal Picks

Country Dance