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CME: Corn Futures Closed Lower Friday

25 November 2013

US - December Corn finished down 3/4 at 422 1/4, 4 1/2 off the high and 1 3/4 up from the low. March Corn closed down 1/4 at 429 1/4. This was 2 1/4 up from the low and 3 off the high.

December corn saw choppy and two-sided trade today as news of more active producer selling after the rally yesterday kept new buyers on the sidelines and a surge up in nearby soybean prices kept sellers on the sidelines.

The early break to near the 420 strike price failed to generate new selling interest and the mid-session rally to near 427 also failed to spark much buying interest.

Short-covering appeared to be the dominant force Thursday and traders are attempting to determine if the 3-day bounce off of the lows was enough to correct the oversold condition. Options expire today and 420 and 430 strikes remain active.

The surge in soybeans helped pull the market off of the lows and the lower US dollar added to the positive tone.

Traders noted more active producer selling on the rally yesterday and will be monitoring the basis situation for clues on if this trend continues.

Open interest remains near the highest level since June of 2011 and this has some traders nervous that the short-covering bounce is just beginning.

January Rice finished down 0.095 at 15.715, equal to the high and equal to the low.

Soy Futures Closed Higher

January Soybeans finished up 28 at 1319 1/2, 2 1/2 off the high and 29 up from the low. March Soybeans closed up 26 1/4 at 1306. This was 27 3/4 up from the low and 1 1/4 off the high.

December Soymeal closed up 16.8 at 427.8. This was 16.8 up from the low and 1.0 off the high.

December Soybean Oil finished down 0.38 at 41.16, 0.46 off the high and 0.12 up from the low.

January soybeans closed right up near the November highs and managed to exceed the high right near the close to push up to the highest level since September 27th.

January gained about 20 cents on the November 2014 contract as upfront demand seems to be driving the market higher with active commercial and speculative bull spreading.

Bull spreads worked well in soybeans and meal as commercial traders see very strong front-loaded demand. January-March meal bull spread worked well with traders concerned over short-term tightness.

Private exporters reported a sale of 115,000 tonnes of US soybeans to China for the 2013/14 season.

Meal/oil spreading was also seen as a positive force as the high export book for meal should force crush higher and US feed demand is also strong.

Palm oil pushed to a 14 month high overnight and closed lower. December oil closed down about 46 on the session with December meal up $16.90.

Meal sales on the books have reached 57.6% of the USDA forecast for the marketing year versus a 5 year average of 42.0% sold for this time of the year.

Wheat Futures Closed Higher

December Wheat finished up 3/4 at 649 1/2, 4 1/4 off the high and 1 1/2 up from the low. March Wheat closed up 2 1/4 at 657. This was 2 up from the low and 3 off the high.

December wheat managed to close slightly higher on the session but did manage to close more than 5 cents higher on the week.

Fears that Australia and Argentina crop production may be hit with adverse weather helped to provide some underlying support.

The market took out yesterday's highs but failed to attract new buying and set-back into the close and well off of the highs.

The sharp drop in the US dollar and a surge up in soybeans helped to support. Talk of the oversold condition of the market and ideas that exports remain strong has helped to offset improving crop outlook for the 2014 crops.

December KC wheat closed up near 7 cents on the day and closed nearly 4 cents higher on the day.

Tunisia bought 92,000 tonnes of durum wheat from optional origin. Paris wheat futures are consolidating this week's gains to near a 5-month high as European exports have been active.

December Oats closed up 9 3/4 at 369. This was 8 3/4 up from the low and 3/4 off the high.

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