TheCropSite.com- news, features, articles and disease information for the crop industry

News

CME: Corn Futures Closed Moderately Higher Thursday

04 November 2011

US - December corn closed moderately higher on the session but could not take out yesterday's highs.

December Corn finished up 8 1/2 at 653 1/2, 5 off the high and 12 3/4 up from the low. March Corn closed up 7 3/4 at 663 3/4. This was 12 1/4 up from the low and 4 3/4 off the high.

Ideas that Europe will find solutions to the euro debt crises and more rumors that China was checking prices on efforts to re-stock reserves helped to support. The rally pushed the market to near the high end of the recent trading range.

Export news was a little better than expected and outside market forces were positive to help support the early gains.

Weekly export sales came in at 622,600 metric tonnes which was a bit higher than expected. As of October 27th, cumulative corn sales stand at 51.9 per cent of the USDA forecast for 2011/2012 (current) marketing year versus a 5 year average of 37.6 per cent. Sales of 441,000 metric tonnes are needed each week to reach the USDA forecast.

Talk of a smaller yield for the report next week and strength in other grain markets helped to support.

Less concerns for Europe and rumors that China may loosen monetary policy were factors to support commodity markets in general.

Wheat Futures Closed Moderately Higher

December Wheat finished up 12 1/2 at 636, 8 1/4 off the high and 16 up from the low. March Wheat closed up 9 1/4 at 668 1/4. This was 12 3/4 up from the low and 8 3/4 off the high.

December wheat closed moderately higher on the session and managed to post a 3-session high. Export sales were on the low end of trade expectations but outside markets were strong enough to support.

Positive price action in gold, energy and other commodity markets helped to support a higher opening and the market saw solid gains into the mid-session.

Traders suspected short-covering as active as fund traders held a hefty net short position.

Outside market forces were a positive factor as the market was lower overnight before financial markets helped support.

Rains into the dry areas of the US and Australia and slow export news were seen as short-term negative forces.

Weekly export sales for wheat came in at 320,100 metric tonnes which was below expectations. As of October 27, cumulative wheat sales stand at 61.0 per cent of the USDA forecast for 2011/2012 (current) marketing year versus a 5 year average of 62.4 per cent. Sales of 332,000 metric tonnes are needed each week to reach the USDA forecast.

Soybean Futures Closed Sharply Higher

January Soybeans finished up 24 1/2 at 1227 1/4, 4 1/4 off the high and 26 1/2 up from the low. March Soybeans closed up 24 1/4 at 1236 1/2. This was 26 up from the low and 4 off the high.

December Soymeal closed up 4 at 314.5. This was 4.4 up from the low and 3.1 off the high.

December Soybean Oil finished up 1.18 at 52.03, 0.06 off the high and 1.55 up from the low.

January soybeans closed sharply higher on the session and experienced the highest close in five sessions. On top of supportive outside forces, the market also saw support from rumors that China was looking to buy soybeans and soybean oil for re-stocking purposes.

Less fears of a meltdown in Europe and ideas or rumors that China may ease monetary policy along with ideas that the market is a bit oversold helped to support strong gains early in the session today.

Talk of short-covering and ideas that wet weather might slow the tail end of harvest and news of low deliveries against the November contract added to the support.

A weak US dollar and talk that China is a bit more active on the world market helped to support as well.

Argentina soybean crushing plant workers managed to halt crushing activities at major plants in Rosario, according to union leaders.

Weekly export sales for soybeans came in at just 209,700 tonnes which was well below trade expectations. As of October 27th, cumulative soybean sales stand at 49.5 per cent of the USDA forecast for 2011/2012 (current) marketing year versus a 5 year average of 54.3 per cent. Sales of 427,000 metric tonnes are needed each week to reach the USDA forecast.

Net meal sales came in at 220,800 metric tonnes which was a bit higher than expected and compares with 101,000 tonnes needed each week to reach the USDA forecast.

Net oil sales came in at just 700 metric tonnes, well below expectations. Cumulative sales stand at 10.5 per cent of the USDA forecast for 2011/2012 (current) marketing year versus a 5 year average of 25.7 per cent. Sales of 15,000 metric tonnes are needed each week to reach the USDA forecast.


Daily Crop Report - Copyright � 2008 CME. All rights reserved.


TheCropSite News Desk

Our Sponsors

Partners