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CME: Corn Futures Closed Lower Tuesday

25 April 2012

US - July Corn finished down 4 1/2 at 608, 13 3/4 off the high and 3 up from the low. December Corn closed down 4 at 541 1/2. This was 3 3/4 up from the low and 8 1/2 off the high.

May corn moved from sharply higher on the day early in the session to close moderately lower on the day. The market saw confirmation of China demand from the USDA sales news this morning and the market surged higher early in the day to post the early high.

However, 'buy the rumor, sell the fact' selling helped to spark a sell-off from the highs with the market trading just slightly higher on the day into the mid-session and December corn moving down on the day. December corn closed 4 cents lower after trading as much as 5 1/2 higher early. The early rally pushed the market to the highest level since April 13th.

Private exporters reported a sale of 480,000 tonnes of US corn to unknown destination for the 2011/12 season. Traders believe this sale is to China. The slower than expected plantings pace and a cold weather outlook for the next week helped to support the market as well.

September corn gained 4 3/4 cents on the December corn as traders see "less" chances of early harvested corn due to the slower plantings pace and a cool outlook for the next 10 days. Taiwan bought 60,000 tonnes of corn from Brazil. July Rice finished down 0.005 at 15.925, 0.005 off the high and 0.055 up from the low.

Soybean Futures Closed Higher

July Soybeans finished up 24 at 1465, 6 1/4 off the high and 27 1/4 up from the low. November Soybeans closed up 10 1/2 at 1352. This was 12 up from the low and 4 off the high. July Soymeal closed up 12.3 at 415.7. This was 12.3 up from the low and 1.2 off the high. July Soybean Oil finished up 0.2 at 55.69, 0.26 off the high and 0.15 up from the low.

July soybeans closed sharply higher on the session and managed to push to a new contract high. July soybeans are now up as much as 61 3/4 cents from last week's lows. More talk of a smaller South America crop due to lower production estimates from key forecasters and concerns that Argentina could slow the crush pace ahead helped support strong gains in soybeans and meal early in the session yesterday.

News of potential frost damage to the Buenos Aires region in Argentina last night with lows down to 26 degrees added to the positive tone. Talk that meal offers from Argentina for August and beyond are difficult to come by helped to support.

May meal surged higher and led the rally in the complex with nearby meal pushing to the highest level since July of 2009. Stats Canada pegged canola planted area at 20.4 million acres which was slightly below trade expectations but up 8 per cent from last year. Late weakness in the other grain helped pull the market off of the highs into the close.

Wheat Futures Closed Unchanged

July Wheat finished unchanged at 632 1/2, 14 1/2 off the high and 1 3/4 up from the low. December Wheat closed down 3/4 at 671 1/4. This was 1 3/4 up from the low and 14 off the high. May wheat closed slightly lower on the session after trading as much as 14 1/4 cents higher early yesterday.

A positive tilt to outside markets and cold weather concerns for the weekend and early next week for crops in Illinois, Indiana and Ohio helped to support active buying and more short-covering in wheat this morning. This pushed the market to the highest level since April 13th with July wheat now up as much as 37 3/4 cents from last weeks lows.

A smaller Ukraine crop estimate added to the positive tone. Crop conditions declined slightly and spring wheat progress remains on a record fast pace. July Minneapolis wheat closed down 8 1/2 cents with the fast planting pace for spring wheat helping to pressure. Canadian wheat planted area was pegged at 24.3 million acres, up 13 per cent from last year and about 1 million acres above trade expectations.

A private forecaster in Europe pegged German wheat production at 22.2 million tonnes this year from 22.7 million last year. The market is beginning to view the May production report with an eye on big yield and production estimates for the winter wheat crop. July Oats closed up 15 3/4 at 342 1/2. This was 13 1/2 up from the low and 2 1/2 off the high.

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