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

News

CME: Corn Futures Closed Higher Thursday

22 November 2013

US - December Corn finished up 6 at 423, 1 off the high and 6 1/4 up from the low. March Corn closed up 4 1/4 at 429 1/2. This was 5 up from the low and 1 1/4 off the high.

December corn closed 6 cents higher on the session and up 12 1/4 cents from from Tuesday's lows. Talk of the oversold condition, light producer selling and a surge up in nearby ethanol futures helped to support the market.

December ethanol was at $1.60 on November 6th and has pushed up in 10 of the past 11 trading days to a high of $2.05 today and the highest since mid-June. This helped cause spot ethanol producer margins to surge.

Weekly export sales came in higher than expected at 945,100 tonnes for the current marketing year and 37,600 for the next marketing year for a total of 982,700.

Cumulative corn sales stand at 68.6% of the USDA forecast for 2013/2014 (current) marketing year versus a 5 year average of 49.2%.

Sales of just 268,000 tonnes are needed each week to reach the USDA forecast. China was a noted buyer of 321,600 tonnes.

January Rice finished up 0.125 at 15.81, equal to the high and equal to the low.

Soy Futures Closed Higher

January Soybeans finished up 17 3/4 at 1291 1/2, 1 off the high and 16 1/4 up from the low. March Soybeans closed up 15 1/2 at 1279 3/4. This was 14 3/4 up from the low and 1 off the high.

December Soymeal closed up 4 at 411.0. This was 6.4 up from the low and 0.8 off the high.

December Soybean Oil finished up 1.22 at 41.54, 0.27 off the high and 1.27 up from the low.

January soybeans closed 17 3/4 cents higher on the session as strong gains in soybean oil and a shift from lower to higher on the day in meal helped to spark the late buying.

Solid export sales news and a surge higher on soybean oil helped to drive the market higher into the mid-day. December oil closed up 122 on the day and not far from the early November highs.

December meal fell to the lowest level since November 8th but closed $4.00 higher. Weekly oil sales came in at 95,800 metric tonnes as compared with trade expectations near 75,000.

Cumulative soybean oil sales stand at 47.7% of the USDA forecast for 2013/2014 (current) marketing year versus a 5 year average of 35.2%. Sales of just 6,000 metric tonnes are needed each week to reach the USDA forecast.

On top of strong sales, palm oil futures pushed up to a 1-year high overnight. Soybean sales came in at 1.376 million tonnes from expectations at 750,000 tonnes with the high end at 900,000 tonnes.

Cumulative soybean sales stand at 89.9% of the USDA forecast for 2013/2014 (current) marketing year versus a 5 year average of 63.3%. Sales of just 96,000 tonnes are needed each week to reach the USDA forecast.

Bulls noted massive sales on books and bears noted that unknown destination cancelled 465,200 tonnes. Sales shipped for the week hit a whopping 2.488 million tonnes with China at 1.926 million. Meal sales came in at 116,000 which was well below trade expectations.

This pushed cumulative sales to 57.6% of the USDA forecast for the marketing year versus a 5 year average of 42.0% sold. Sales of 86,000 metric tonnes are needed each week to reach the USDA forecast. South America weather remains negative.

Wheat Futures Closed Higher

December Wheat finished up 1 1/2 at 648 3/4, 4 3/4 off the high and 1 1/4 up from the low. March Wheat closed down 3/4 at 654 3/4. This was 3/4 up from the low and 6 1/2 off the high.

December wheat closed 1 1/2 cents higher on the session as strength in the other grains helped to pull the market higher in spite of weakness late in the day. The close was down 4 3/4 cents off of the highs.

The market challenged yesterday's highs early but the lack of new buying interest left the market with sluggish trade into the mid-session.

December KC wheat closed 3/4 of a cent lower on the day as traders see more precipitation in the plains ahead of dormancy as beneficial to new crop. Weekly export sales came in at 618,100 metric tonnes which was well above trade expectations.

Cumulative wheat sales stand at 72.9% of the USDA forecast for the marketing year versus a 5 year average of 61.9% sold for this time of the year. Sales of 286,000 tonnes are needed each week to reach the USDA forecast.

The European Union this week granted export licenses for 581,000 tonnes which pushed cumulative sales to 10.6 million tonnes from 6.8 million tonnes last year by this date.

This helped push European wheat futures to a 5-month high. Morocco plans to waive their import tariff in an attempt to boost supply and traders see this benefiting French sales.

December Oats closed down 1 at 359 1/4. This was 1 1/4 up from the low and 4 3/4 off the high.


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


TheCropSite News Desk

Our Sponsors

Partners


Seasonal Picks

Country Dance