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CME: Corn Futures Closed Lower Thursday

06 December 2013

US - March Corn finished down 3 at 433 1/2, 4 1/4 off the high and 2 1/2 up from the low. May Corn closed down 2 1/2 at 442. This was 2 3/4 up from the low and 4 off the high.

March corn closed 3 cents lower on the session with an inside trading day. Sluggish export sales news and continued concerns over China demand for US corn helped to pressure. More concerns over China canceling US corn plus sluggish weekly sales news helped to pressure the market early.

However, similar to the past few sessions there appears to be short-covering support due to the aggressive speculative net short position and corn is also finding support from unwinding of wheat/corn spreads.

Weekly export sales came in at 593,600 metric tonnes which was well below trade expectations which were up near 1 million tonnes.

As of November 28, cumulative corn sales stand at 73.1% of the USDA forecast for 2013/2014 (current) marketing year versus a 5 year average of 51.8%. Sales of 242,000 metric tonnes are needed each week to reach the USDA forecast.

January Rice finished down 0.25 at 15.655, equal to the high and equal to the low.

Soy Futures Closed Lower

January Soybeans finished down 1 1/2 at 1328, 5 off the high and 12 up from the low. March Soybeans closed down 1/2 at 1311 3/4. This was 10 3/4 up from the low and 3 1/2 off the high.

January Soymeal closed down 2.2 at 428.1. This was 4.0 up from the low and 4.0 off the high.

January Soybean Oil finished up 0.26 at 40.61, 0.1 off the high and 0.55 up from the low.

January soybeans closed 1 1/2 cents lower on the session but up 12 cents from the lows. The early bounce came after the USDA announce a daily sales to China; not a cancellation but there was a lack of new buying interest when the market rallied up to near unchanged on the day.

A sharp sell-off in meal helped to pull the market lower. There was still no deliveries against December meal but 684 contracts for December oil which pushed the total for the month to 3,415 contracts.

Weekly export sales for soybeans came in at 805,200 metric tonnes for the current marketing year and 355,600 for the next marketing year for a total of 1.160 million tonnes which was about as expected.

As of November 28th, cumulative soybean sales stand at 95.3% of the USDA forecast for 2013/2014 (current) marketing year versus a 5 year average of 67.1%. Sales of just 47,000 metric tonnes are needed each week to reach the USDA forecast.

On top of the weekly sales, exporters reported a daily sale of 110,000 tonnes of US soybeans to China for the 2014/15 season.

Meal sales came in at 120,400 metric tonnes for the current marketing year and 10,500 for the next marketing year for a total of 130,900. Cumulative soybean meal sales stand at 62.2% of the USDA forecast for 2013/2014 (current) marketing year versus a 5 year average of 46.2%.

Sales of 80,000 metric tonnes are needed each week to reach the USDA forecast. Oil sales came in at 1,400 metric tonnes.

Cumulative soybean oil sales stand at 51.6% of the USDA forecast for 2013/2014 (current) marketing year versus a 5 year average of 40.5%. Sales of 6,000 metric tonnes are needed each week to reach the USDA forecast.

Wheat Futures Closed Lower

March Wheat finished down 9 3/4 at 652, 11 off the high and 1 1/4 up from the low. July Wheat closed down 9 1/2 at 654. This was 1 3/4 up from the low and 10 1/2 off the high.

March wheat closed 9 3/4 cents lower on the session. Minneapolis March wheat took the brunt of the selling in the last two sessions and was down 8 1/4 cents today to a new contract low.

Chicago wheat was down to the lowest level since September 16th. Sluggish weekly sales news and follow-through selling from the shock of the massive Canadian wheat production number yesterday helped to pressure; especially Minniapolis.

Weekly export sales came in at just 229,200 metric tonnes which was just half of trade expectations. As of November 28th, cumulative wheat sales stand at 75.5% of the USDA forecast for 2013/2014 (current) marketing year versus a 5 year average of 65.1% sold at this time of the year.

Sales of 278,000 metric tonnes are needed each week to reach the USDA forecast. The European Union granted export licenses for the week of 572,000 tonnes. This pushed the total exports for the year to 11.8 million tonnes from 8.0 million last year at this time.

Algeria bought 300,000 tonnes of milling wheat for optional origin for January shipment which was 3 times more than announced as their minimum yesterday.

With bigger crops than expected from Canada and Australia this week and the weak export sales numbers, traders are having second thoughts about predicting that the USDA will boost exports and lower ending stocks by 25 million bushels for the supply/demand report next week.

March Oats closed down 1 at 325 3/4. This was 1 3/4 up from the low and 2 off the high.


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