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CME: Corn Finished Lower Friday

16 January 2012

US - March Corn finished down 12 at 599 1/2, 15 1/4 off the high and 1 up from the low. May Corn closed down 11 3/4 at 606 1/2. This was 1 1/4 up from the low and 15 1/4 off the high.

March corn closed 12 cents lower on the session and down 44 cents for the week. Mid-day news that heavy rains are possible for next weekend in Argentina and southern Brazil (6-10 day) helped ease crop concerns and sparked aggressive long liquidation selling late in the day. The market saw some early selling pressures led by weakness in outside markets and follow-through selling from yesterday's limit-down break.

However, support held on the early break and the market was trading near unchanged into the mid-session. The jump in the US dollar and weakness in metal and equity markets helped to pressure. The lack of a major rain event in the forecast for Argentina for the next week or more helped to provides some underlying support and traders noted some short-covering ahead of the long weekend as weather traders attempt to determine if the forecast will improve for next weekend and beyond.

Cheap feed wheat on the world market and sluggish export sales news this week were seen as negative forces. The bearish USDA data from yesterday was also seen as a negative force again today and end of the week selling turned active late. March Rice finished down 0.13 at 14.44, 0.15 off the high and equal to the low.

Wheat Futures Closed Lower

March Wheat finished down 2 3/4 at 602 1/4, 7 3/4 off the high and 3 1/4 up from the low. July Wheat closed down 2 1/4 at 645 3/4. This was 3 3/4 up from the low and 7 3/4 off the high. March wheat closed 2 3/4 cents lower on the session and down 22 1/2 cents for the week. The market spent some time during the session higher on the day but weakness from outside markets and the afternoon break in other grains helped to pressure.

A wetter forecast for Argentina and southern Brazil in the 6-10 day models helped to push the market lower on the day. With the strong dollar and weakness in equity markets and fears of downgrade potential for European countries credit ratings helped to pressure the market early. However, a lack of new selling interest on the early set-back and talk that the sharp break yesterday was overdone helped to support a bounce to slightly higher on the day into the mid-session.

News that Egypt bought 180,000 tonnes of wheat from their overnight tender with none from the US helped to pressure the market early. The wheat was purchased from France and Russia. Hefty supply was noted in the USDA reports yesterday and news that US producers planted near 1 million acres more of winter wheat than traders had expected helped to pressure. March Oats closed down 1 3/4 at 282 1/2. This was 3/4 up from the low and 6 3/4 off the high.

Soybean Futures Closed Lower

March Soybeans finished down 24 1/4 at 1158 1/4, 36 1/4 off the high and 3/4 up from the low. May Soybeans closed down 24 3/4 at 1167 3/4. This was 1/2 up from the low and 36 3/4 off the high. March Soymeal closed down 5.6 at 301.5. This was 0.9 up from the low and 8.1 off the high.

March Soybean Oil finished down 1.17 at 50.29, 1.46 off the high and 0.13 up from the low. March soybeans closed 24 1/4 cents lower on the session and down 38 1/4 cents for the week. Positioning ahead of the three-day weekend with uncertainty for the weather forecast for South America for Tuesday morning helped to keep the trade choppy early today.

However, the mid-day forecast models showed heavier rains in the 6-10 day forecast for Argentina and southern Brazil and this sparked more aggressive selling late in the session. The turn up in the US dollar and weakness in equity markets into the opening helped to pressure the market early.

Rains in South America this week were beneficial to crops and the USDA data was negative yesterday with downward revisions in demand and this helped to keep some selling pressures on the market today. A sharp break in palm oil overnight helped to pressure as well. For the NOPA crush report on Tuesday, traders see December crush near 141.5 million bushels.


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