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CME: Corn Futures Closed Higher Monday

03 December 2013

US - December Corn finished up 1 1/4 at 416 1/2, 3/4 off the high and 6 1/2 up from the low. March Corn closed unchanged at 424 1/2. This was 6 up from the low and 1/2 off the high.

March corn closed unchanged on the session and up 6 cents from the mid-session lows which were also the contract lows.

Failure to find new selling interest on the move to a near 3-year low may have sparked some short-covering late in the day.

Good weather in South America and continued talk that actual production was higher than the November USDA projection helped to pressure. There are also rumors that China has rejected two more US cargoes due to GMO material.

Weekly export inspections came in at 35.66 million bushels which was higher than expected. This was up from 30.2 million last week and up from 27.37 million necessary each week to reach the USDA projection for the year.

Cumulative shipments have reached 22.9% of the USDA forecast for the season as compared with 24.5% as the 5-year average for this time of the year.

January Rice finished down 0.06 at 15.9, 0.08 off the high and equal to the low.

Soy Futures Closed Lower

January Soybeans finished down 16 at 1320 1/2, 25 1/2 off the high and 1 1/4 up from the low. March Soybeans closed down 11 3/4 at 1306. This was 3 up from the low and 21 off the high.

December Soymeal closed down 9.6 at 447.0. This was 0.6 up from the low and 14.8 off the high.

December Soybean Oil finished up 0.12 at 40.34, 0.45 off the high and 0.27 up from the low.

January soybeans closed 16 cents lower on the session and down 25 1/2 cents from the overnight highs of the session.

The volatile outside-day down was seen as a bearish technical development. Follow-through support from the active export sales of last week helped to support the early rally to the highest level since September 19th.

However, the turn down in nearby meal after hitting new contract highs and slower than expected weekly export inspections for soybeans helped spark aggressive long liquidation selling and the reversal-type action.

Traders were looking for weekly export inspections near 60-70 million bushels as compared with 67.4 million last week and 87.8 million the previous week.

However, inspections came in at 52.6 million bushels which is still well above the 20.5 million necessary each week to reach the USDA projection for the year. Spread liquidation supported soybean oil and November 2014 soybeans which were trading higher on the day into the mid-session.

Weather looks favorable for South America crops and outside market forces (higher US dollar and lower metal markets) are seen as additional negative forces. Traders also viewed a private South America production forecast for Brazil soybean production at 89.4 million tonnes as a bearish development.

The USDA has pegged the crop at a record high 88 million tonnes from just 82 million last year and 66.5 million for 2012.

Wheat Futures Closed Lower

December Wheat finished down 5 1/4 at 649 3/4, 11 1/2 off the high and 2 1/2 up from the low. March Wheat closed down 7 at 661 3/4. This was 1 1/4 up from the low and 13 off the high.

March wheat closed 7 cents lower on the session and down 13 cents from the highs of the day. Funds were active sellers after the market turned down and the reversal after first moving up to the highest level since November 5th was seen as a negative technical development.

Algeria has issued a tender to buy 50,000 tonnes of optional origin milling wheat. Talk that there may be snow ahead of the cold weather in the plains for later this week helped to spark some of the selling pressure.

Weekly export inspections came in at 15.5 million bushels which was slightly above trade expectations. Inspections need to average 16.7 million bushels per week to reach the USDA projection for the year.

Cumulative shipments have reached 59.9% of the USDA forecast for the season as compared with 49.8% as the 5-year average for this time of the year. March Kansas City wheat closed 3 1/2 cents lower on the day.

There were 724 contracts delivered against December Chicago wheat and 200 contracts delivered against the December KC contract. Traders see Wednesday's Stats Canada update on wheat production to show the crop near 33.8 million tonnes which is up from the October estimate of 33.02 million.

December Oats closed down 5 3/4 at 359 1/2. This was 1/2 up from the low and 1 off the high.


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