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CME: Corn Futures Closed Higher Friday

30 April 2012

US - July Corn finished up 18 at 625 1/2, 4 off the high and 19 1/4 up from the low. December Corn closed up 3 3/4 at 538 3/4. This was 5 1/4 up from the low and 6 1/4 off the high.

July corn opened sharply higher and traded up to its highest level since April 13th. Support in the corn market came from tight US cash markets and news of more active buying from China. The USDA confirmed the highest one-day sale of corn since 1991, totaling 1.56 million tonnes.

An unknown destination bought 1.44 million tonnes of US corn for the 2012/13 season, and some traders assume that could be China. Additionally, there was a sale confirmed to China for 120,000 tonnes for the 2011/12 season.

Cash basis levels remain very strong for old crop with basis bids of 43 cents over July for central Illinois. Cold weather moved into central Indiana overnight, with temperatures dropping into the 20's, and that added to the positive tone.

The day's more than 3.0 per cent gain helped July corn close the week with a gain of nearly 4.0 per cent. July Rice finished down 0.425 at 15.255, 0.435 off the high and 0.075 up from the low.

Soybean Futures Closed Higher

July Soybeans finished up 13 1/4 at 1493 1/2, 13 1/4 off the high and 12 up from the low. November Soybeans closed up 3 1/4 at 1362. This was 5 1/2 up from the low and 13 off the high. July Soymeal closed up 6.6 at 428.4. This was 7.3 up from the low and 3.5 off the high.

July Soybean Oil finished down 0.22 at 55.53, 0.66 off the high and 0.05 up from the low. July soybeans began the Thursday evening trade with a gap higher open and continued the upside surge throughout Friday's session.

The market rallied to a new contract high, as continued buying from China, strong cash basis levels, talk of no deliveries for May soybeans next week and continued concerns for the crop size in South America provided the fuel to run higher.

Sharply higher trade in corn added to the bullish tone. Private exporters reported to the USDA the sale of 110,000 tonnes of US soybeans to China and 116,000 tonnes of US soybeans to unknown destination for the 2012/13 season.

The weather is turning a bit wetter for the two week outlook, which could slow planting progress, but it is also seen as a benefit to growing conditions for the coming season. July soybeans ended the week with a gain of more than 3.0 per cent and a new contact high close.

Wheat Futures Closed Higher

July Wheat finished up 14 1/2 at 650, 5 1/2 off the high and 17 1/2 up from the low. December Wheat closed up 12 1/2 at 684 1/4.

This was 15 1/2 up from the low and 4 1/2 off the high. July wheat rose to the highest prices levels since April 10th early in Friday's session, and was able to hold a large portion of that initial strength throughout the rest of Friday's trading.

July wheat finished the week with a gain of 27 cents. A strong rally in corn and reports of cold weather moving into central Indiana overnight with temperatures dropping into the 20's were seen as the key supportive factors Friday.

A large selloff in the US Dollar and active buying of corn and soybeans from China were also seen as positive forces, helping to spark additional short covering going into the weekend. July Oats closed up 1 1/4 at 341 3/4. This was 2 up from the low and 5 1/4 off the high.

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