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CME: Corn Futures Closed Higher Monday

10 December 2013

US - March Corn finished up 3 3/4 at 438, 1/2 off the high and 5 1/2 up from the low. May Corn closed up 3 3/4 at 446 1/2. This was 5 1/2 up from the low and 1/2 off the high.

March corn closed moderately higher on the session and up near the highs. Short-covering and ideas that "if" there is a surprise in the USDA report tomorrow that the demand numbers may be revised higher helped to support the market.

In addition, short-covering and positioning into the report helped to provide some support and there was talk of active buying in calls helping to support.

Fears that China will cancel more US cargoes helped to spark the selling pressure early. Weekly export inspections hit 40.3 million bushels as compared with 36 million the previous week and just 27 million necessary each week to reach the USDA projection for the entire marketing year.

Cash markets were steady to firm on slow movement.

January Rice finished down 0.035 at 15.51, equal to the high and equal to the low.

Soy Futures Closed Higher

January Soybeans finished up 18 1/4 at 1343 3/4, 3 off the high and 19 1/4 up from the low. March Soybeans closed up 16 1/4 at 1326 3/4. This was 18 1/4 up from the low and 3 1/4 off the high.

January Soymeal closed up 11.3 at 438.7. This was 12.1 up from the low and 0.8 off the high.

January Soybean Oil finished down 0.27 at 40.22, 0.5 off the high and 0.05 up from the low.

March soybeans closed moderately higher on the session and experienced the highest close since September 18th.

The move over the December 2nd peak helped spark additional technical buying but solid demand from China and a surge higher in December (and cash) meal helped to support. Nearby meal futures surged more than $15.00 to help support the market.

January oil closed down about 25 on the day. Exporters reported a sale of 290,000 tonnes of US soybeans sold to China with 230,000 for the 2013/14 season and 60,000 for 2014/15 season.

The China soybean buying was a bit of a surprise as traders believe China has already booked nearly all of the demand for US soybeans through February and with a record South America crop on the way that demand will shift to mainly South America from now on.

The China demand was partially offset by the excellent weather in the forecast for South American crops.

Weekly export inspections hit 60.4 million bushels as compared with 54.9 million the previous week and just 19.35 million necessary each week to reach the USDA projection for the entire marketing year.

Wheat Futures Closed Lower

March Wheat finished down 1/2 at 650 1/2, 6 3/4 off the high and 1 1/4 up from the low. July Wheat closed down 1 at 653. This was 3/4 up from the low and 6 1/4 off the high.

March wheat closed slightly lower on the day and down 7 cents from the overnight highs. Ideas that winterkill issues will not be known until harvest and that US export news remains sluggish helped to pressure.

In addition, traders see the Canada data from last week as a possible reason for the USDA report tomorrow to carry a negative tilt helped to pressure.

The market has failed to see much follow-through buying after the bitter cold weather over the weekend as most areas received snow cover.

Some weather-watchers believe near 5% of the winter wheat crop may have seen some winterkill damage which others believe it could be near 15%. March KC wheat was up 1 1/2 cents into the mid-day.

Weekly export inspections reached 19.76 million bushels as compared with 15.5 million the previous week and 16.56 million necessary each week to reach the USDA projection for the entire marketing year.

Shipments have reached 61.7% of the USDA forecast for the season as compared with 51.3% as the 5-year average for this time of the year.

While the pace is ahead of normal, traders see the larger than expected crops from Canada and Australia as reasons to suspect that US exports could stay slow.

March Oats closed up 4 1/4 at 332 1/4. This was 4 1/2 up from the low and 3/4 off the high.


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