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CME: Corn Futures Closed Unchanged Tuesday

11 January 2012

US - March Corn finished unchanged at 652, 5 1/2 off the high and 4 up from the low. May Corn closed down 1/4 at 659 1/4. This was 3 3/4 up from the low and 5 1/2 off the high.

March corn closed unchanged on the session after choppy and two-sided trade. Support emerged on the early break and the market managed to trade slightly higher on the session into the mid-day.

Ideas that more damage was down to the South America crops yesterday and on the weekend with temperatures surging to the 100-110 degree range for growing areas helped to support the market but the upside was limited by talk that rains today and tomorrow could ease stress and there was some profit-taking selling ahead of the key USDA reports on Thursday.

The market has experienced limit moves following the last five January USDA stocks reports in a row. In 2011, the market hit the 30 cent limit-up move and closed 24 higher on the day. In 2009 and 2010, the market hit and closed down the 30 cent limit. In 2007 and 2008, the market hit and closed up the 20 cent limit.

With the wide range of estimates, prices look very active for late this week. Brazil's crop agency lowered their forecast for the size of the corn crop to 59.2 million tonnes from 60.3 million tonnes last month but noted that the impact of recent dryness in the southern regions would not be taken into account until a field survey next month. South Korea seeks 235,000 tonnes of corn, 55,000 tonnes of feedwheat and 55,000 tonnes of soybean meal. March Rice finished down 0.04 at 14.765, 0.055 off the high and equal to the low.

Wheat Futures Closed Lower

March Wheat finished down 2 at 639 3/4, 5 off the high and 5 1/2 up from the low. July Wheat closed down 1 1/4 at 675 1/2. This was 6 3/4 up from the low and 4 off the high.

March wheat closed slightly lower on the session with mostly quiet trade. While the outside market forces were strong today with a weaker dollar and sharply higher trade in metal, energy and stock markets, wheat followed the other grain markets lower early in the session. Algeria is tendering to buy 50,000 tonnes of optional-origin milling wheat.

Japan is in the market to buy 139,239 tonnes of food wheat from the US in their weekly tender. Talk that the run higher yesterday was a bit overdone helped to spark some selling pressures early today.

Ideas that the US and world ending stocks could be adjusted lower for the USDA supply/demand reports on Thursday morning and talk of potential smaller crop from Ukraine for the coming season helped to support the market on the early break. March Oats closed up 3 3/4 at 299 1/4. This was 3 1/2 up from the low and 1/2 off the high.

Soybean Futures Closed Lower

March Soybeans finished down 1 at 1232, 5 off the high and 11 1/2 up from the low. May Soybeans closed down 1 at 1241. This was 11 1/4 up from the low and 5 1/4 off the high. March Soymeal closed down 1 at 322.5.

This was 2.9 up from the low and 2.0 off the high. March Soybean Oil finished up 0.17 at 52.5, 0.05 off the high and 0.62 up from the low. March soybeans closed slightly lower on the session after choppy and mostly lower trade for the day. The market pushed moderately lower on the session into the mid-day as traders position ahead of the key USDA reports for release on Thursday morning.

Rains today in Argentina and tomorrow in Brazil could help ease stress on the crops after recent dryness and temperatures well above 100 degrees for a large region of Argentina yesterday may have helped damage crop potential. Ideas that the 36 1/2 cent surge yesterday was a bit overdone helped spark some profit-taking selling early in the session today.

The selling emerged despite the surge higher in equity, energy and metal markets today and a set-back in the US dollar. Brazil's crop agency raised their forecast for the size of the soybean crop to 71.75 million tonnes from 71.29 million tonnes last month but noted that the impact of drought in the southern region would not be taken into account until a field survey next month. The revision higher stemmed from a planted acreage adjustment.


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