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CME: Corn Futures Closed Lower Thursday

25 October 2013

US - December Corn finished down 2 1/2 at 440 1/4, 4 1/4 off the high and 1 3/4 up from the low. March Corn closed down 2 3/4 at 452 1/2. This was 1 3/4 up from the low and 4 1/2 off the high.

December corn closed 2 1/2 cents lower on the session as fears of harvest pressures ahead seemed to offset strong demand indications.

Excellent weather in the forecast for the next few weeks to push harvest along was seen as a negative force but solid demand news emerged to provide underlying support. Weekly export sales for the week ending October 3rd came in at 1.341 million tonnes.

Cumulative corn sales stand at 51.3% of the USDA forecast for 2013/2014 (current) marketing year versus a 5 year average of 41.9%. Sales of just 318,000 metric tonnes are needed each week to reach the USDA forecast.

Unknown destination (428,100 tonnes) and China (230,600 tonnes) were the noted buyers in the weekly update. On top of the weekly sales update, private exporters reported the sale of 210,000 tonnes of US corn to Mexico for the 2014/15 time period.

November Rice finished up 0.075 at 15.535, equal to the high and equal to the low.

Soy Futures Closed Lower

November Soybeans finished down 1/4 at 1309 3/4, 8 1/4 off the high and 4 1/4 up from the low. January Soybeans closed down 1/4 at 1303 3/4. This was 4 up from the low and 7 1/2 off the high.

December Soymeal closed up 4.6 at 426.0. This was 5.7 up from the low and 2.1 off the high.

December Soybean Oil finished down 0.37 at 41.13, 0.48 off the high and 0.03 up from the low.

November soybeans closed 1/4 of a cent lower on the day after the early rally failed to penetrate yesterday's highs.

The market traded as much as 8 cents higher on the day but while demand numbers remain very supportive, traders see further harvest pressure ahead and a record Brazil crop into next year as bearish forces.

In addition, the market saw significant "market-on-close" selling for the third day in a row as futures have seen quick losses late in the day which some traders believe is producer selling. The market stayed inside of yesterday's range.

The market was lower early but a surge up in December meal to new highs for the move helped to support. The USDA is slowly catching up on old data and released weekly export sales for the week ending October 3rd this morning.

Weekly export sales for soybeans came in at 929,800 metric tonnes for the current marketing year and 18,000 for the next marketing year for a total of 947,800.

Cumulative soybean sales stand at 73.7% of the USDA forecast for 2013/2014 (current) marketing year versus a 5 year average of 51.5%. Sales of just 206,000 metric tonnes are needed each week to reach the USDA forecast.

Meal sales came in at a whopping 850,100 metric tonnes. Cumulative meal sales stand at 44.9% of the USDA forecast for 2013/2014 (current) marketing year versus a 5 year average of 29.1%. Sales of just 92,000 tonnes are needed each week to reach the USDA forecast.

Oil sales came in at 27,500 metric tonnes. Sales of 8,000 metric tonnes are needed each week to reach the USDA forecast.

Weather remains favorable for harvest but strong demand and commercial buying in soybeans and meal continue to provide underlying support. Meal closed moderately higher and oil moderately lower on the day.

Wheat Futures Closed Lower

December Wheat finished down 5 1/4 at 696 1/2, 11 1/2 off the high and 1/2 up from the low. March Wheat closed down 4 1/2 at 707. This was 3/4 up from the low and 10 1/4 off the high.

December wheat closed 5 1/4 cents lower on the session and experienced the lowest close since October 17th.

Continued weather concerns for Argentina and Australia helped support a solid rally overnight and early this morning with the market trading as much as 6 1/4 cents higher on the day. Ideas that India will be a more aggressive exporter for the coming year helped to pressure.

India's cabinet is expected to soon consider cutting the floor price for wheat exports by 13% which might help boost exports and this news may have pressured. Weekly export sales for wheat for the week ending October 3rd came in at 653,600 tonnes.

Cumulative wheat sales stand at 64.1% of the USDA forecast for 2013/2014 (current) marketing year versus a 5 year average of 52.6%.

Sales of 312,000 metric tonnes are needed each week to reach the USDA forecast. The European Union granted export licenses for 384,000 tonnes of wheat this week which pushed the total for the year to 8.4 million tonnes.

December Oats closed down 1/4 at 344 1/4. This was 2 up from the low and 4 off the high.


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