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CME: Corn Futures Closed Lower Wednesday

28 November 2013

US - December Corn finished down 1 1/4 at 417 1/4, 5 off the high and 1 up from the low. March Corn closed up 1 3/4 at 426 1/2. This was 3 up from the low and 3 1/4 off the high.

March corn closed 1 3/4 cents higher for Wednesday's trading session, which was over 3 cents below the highs posted earlier in the day as the market stayed well inside of yesterday's trading range.

The corn market found support overnight from news of two South Korean purchases of US corn, one for 58,000 tonnes and the other for 60,000 tonnes.

However, a recovery in the Dollar after today's US data weighed on corn and other physical commodity markets. Corn's open interest has declined more than 145,000 contracts since November 21st, and this has some traders concerned that there has been enough liquidation to make sellers comfortable again.

Ethanol production for the week ending November 22nd averaged 927,000 barrels per day. This is up 2.54% from last week's total, and up 15.44% from a year ago. Total ethanol production for the week was 6.489 million barrels.

Corn used in last week's ethanol production is estimated at 97.34 million bushels, and this crop year's cumulative corn used for ethanol production is 1.1 billion bushels.

Corn use needs to average 94.325 million bushels per week to meet this crop year's USDA estimate of 4.9 billion bushels. Ethanol stocks as of November 22 were 15.022 million barrels.

This is down 0.40% versus last week and down 18.12% versus last year.

January Rice finished up 0.095 at 15.835, equal to the high and 0.125 up from the low.

Soy Futures Closed Lower

January Soybeans finished down 9 1/4 at 1320, 21 off the high and 4 up from the low. March Soybeans closed down 5 3/4 at 1306 1/4. This was 2 3/4 up from the low and 15 3/4 off the high.

December Soymeal closed down 4.3 at 445.9. This was 2.2 up from the low and 12.0 off the high.

December Soybean Oil finished down 0.35 at 40, 0.66 off the high and 0.1 up from the low.

January soybeans closed lower today in a sharp reversal from earlier in the session when they traded to their highest level since September 20th, thus ending a string of 5 straight higher closes.

December meal also closed lower after trading to a new contract high. Meal had experienced 4 straight sessions of higher closes.

Cash soybean bids at the Gulf were steady to firm, but the trade may have been a bit unnerved by China's cancellation of a previous 300,000-tonne sale of US soybeans earlier this week.

The sharp breaks off the highs of the day likely made recent longs nervous going into the holiday. December bean oil had its 4th straight lower close and finished just above the November 19th low.

Wheat Futures Closed Higher

December Wheat finished up 4 3/4 at 651 1/4, 5 1/4 off the high and 4 1/2 up from the low. March Wheat closed up 7 1/2 at 663 1/2. This was 7 1/4 up from the low and 3 1/2 off the high.

March wheat broke out above a 2-week consolidation range today and managed to close at its highest level since November 7th.

Apparently the US markets didn't mind that Egypt bought 60,000 tonnes of French wheat in the tender that was announced overnight, as some took it as a sign the the export market in general was heating up.

There was some talk that India may offer up to 700,000 tonnes for sale and that Jordan is tendering to buy 100,000 tonnes of wheat from any origin.

There was also talk of possible Brazilian purchases of US wheat. March Kansas City wheat also closed higher after breaking out of its consolidation range.

December Oats closed down 26 1/4 at 357 3/4. This was 2 3/4 up from the low and 29 1/4 off the high.

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