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

News

CME: Corn Futures Closed Lower Thursday

08 November 2013

US - December Corn finished down 3/4 at 420 1/2, 3 3/4 off the high and 1 1/2 up from the low. March Corn closed unchanged at 431 1/2. This was 1 1/2 up from the low and 3 off the high.

December corn closed 3/4 of a cent lower on the session and down to new lows for the move. Yield concerns continue to pressure the market as traders seem to be expecting a higher yield that the average trade guess near 159 bu/acre.

Short-covering emerged after active export sales news and after the CFTC report showed that speculators hold a record high net short position but highs were in the morning and futures drifted lower for much of the day.

A surge higher in the US dollar and weakness in the stock market helped to pressure late. Positioning ahead of the key USDA production report kept the trade choppy. Weekly export sales came in at 1.718 million tonnes which was well above trade expectations.

Cumulative corn sales stand at 71.5% of the USDA forecast for 2013/2014 (current) marketing year versus a 5 year average of 46.4%. Sales of just 204,000 metric tonnes are needed each week to reach the USDA forecast. China was a noted buyer of 289,400 tonnes and unknown destination was 330,600 tonnes.

January Rice finished up 0.13 at 15.505, 0.035 off the high and 0.135 up from the low.

Soy Futures Closed Higher

January Soybeans finished up 11 1/2 at 1266 1/2, 8 1/4 off the high and 15 1/4 up from the low. March Soybeans closed up 7 1/2 at 1248. This was 11 3/4 up from the low and 8 1/4 off the high.

December Soymeal closed up 7 at 403.8. This was 7.1 up from the low and 7.5 off the high.

December Soybean Oil finished down 0.4 at 40.74, 0.46 off the high and 0.46 up from the low.

January soybeans closed 11 1/2 cents higher on the session and pushed up to the highest level since October 31st.

Export demand news was supportive and the market is also finding some buying ahead of the USDA production report tomorrow with lots of talk that production will be up but so will demand. Weekly export sales for soybeans came in at 1,018,400 tonnes for the current marketing year and 18,700 for the next marketing year for a total of 1,037,100.

Cumulative soybean sales stand at 89.2% of the USDA forecast for 2013/2014 (current) marketing year versus a 5 year average of 59.6%. Sales of just 93,000 metric tonnes are needed each week to reach the USDA forecast.

Meal sales came in at 287,800 metric tonnes which pushed cumulative sales to 57.6% of the USDA forecast for 2013/2014 (current) marketing year versus a 5 year average of 37.5%. Sales of just 76,000 tonnes are needed each week to reach the USDA forecast.

Big meal sales on the books has traders looking for the need for the USDA to raise their crush estimate. Oil sales were also strong at 65,900 metric tonnes.

Sales of 7,000 metric tonnes are needed each week to reach the USDA forecast. On top of the weekly sales, private exporters reported daily sales of 250,000 tonnes of US soybeans to China.

Wheat Futures Closed Lower

December Wheat finished down 1/4 at 653, 4 1/2 off the high and 3/4 up from the low. March Wheat closed up 1 at 663 3/4. This was 1 1/4 up from the low and 3 3/4 off the high.

December wheat closed slightly lower on the day and down near the lows as the mid-day short-covering bounce failed to attract new buying interest.

The market has now closed lower in 9 of the past 11 trading sessions and the higher closes were both 1/4 of a cent.

Early weakness failed to penetrate yesterday's lows and this may have sparked some short-covering with the market staying inside of yesterday's range so far today. Strength in soybeans and talk of tighter ending stocks estimates for the report tomorrow helped to support.

Weekly export sales came in at 416,800 tonnes for the current marketing year and 11,000 for the next marketing year for a total of 427,800. Cumulative wheat sales stand at 69.8% of the USDA forecast for 2013/2014 (current) marketing year versus a 5 year average of 58.6%.

Sales of 297,000 metric tonnes are needed each week to reach the USDA forecast. The EU granted export licenses of 461,000 tonnes this week which pushed cumulative sales to 9.4 million tonnes as compared with 5.7 million last year by this date. A surge in the US dollar is seen as a limiting factor.

December Oats closed down 4 1/2 at 339. This was 7 up from the low and 7 off the high.


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


TheCropSite News Desk

Our Sponsors

Partners


Seasonal Picks

Country Dance