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CME: Corn Futures Closed Lower Monday

22 May 2012

US - July Corn finished down 6 at 629 1/2, 15 off the high and 3/4 up from the low. December Corn closed up 2 at 539. This was 4 1/4 up from the low and 10 1/2 off the high.

December corn has closed higher for six sessions in a row and traded as high as 549 1/2 after a low of 499 on May 11th. Much warmer and drier than normal conditions of the past week plus a continued dry and warm pattern for much of the next two weeks for parts of the Midwest has helped to support active buying from funds and speculators.

For this afternoon's 1st crop conditions weekly update of the year, traders see corn rated near 70 per cent good to excellent from 63 per cent last year. Weekly export inspections came in at 23.3 million bushels which was a bit below expectations and compares with 35.3 million necessary each week to reach the USDA forecast.

July corn was trading lower on the session into the pit close after first trading to the highest level since April 10th. July Rice finished up 0.255 at 15.43, equal to the high and equal to the low.

Soybean Futures Closed Higher

July Soybeans finished up 4 3/4 at 1409 3/4, 13 1/4 off the high and 1 1/4 up from the low. November Soybeans closed up 15 1/2 at 1303 1/2. This was 9 1/4 up from the low and 11 1/4 off the high. July Soymeal closed down 1.7 at 416.2.

This was 0.7 up from the low and 6.3 off the high. July Soybean Oil finished up 0.55 at 50.87, 0.29 off the high and 0.62 up from the low. November soybeans saw solid gains on the session as weather is beginning to become a more important force.

Traders suggested that the extended forecast models are still showing a drier and warmer trend and traders are especially concerned with the areas which did not get any rains in the past week. Traders are concerned with germination and early development in some of the same areas which might go another week or more without much rain. Ideas that the market may need to add some weather premium "just in case" early June remains drier than normal has helped support the market.

The surge higher in wheat and the US stock market has added to the positive tone as outside market forces were somewhat supportive. Heat and dryness in the wheat areas is also seen as a potential supportive force "if" double crop acres do not receive some good rains for planting and this added to the positive tone.

For this afternoon's weekly update, traders see soybean planted area near 68 per cent complete from 46 per cent last week. Weekly export inspections came in at 12.68 million bushels which was below expectations and compares with 11.9 million necessary each week to reach the USDA forecast. Traders will monitor the topsoil issues in some state reports tonight.

Wheat Futures Closed Higher

July Wheat finished up 4 at 699 1/4, 22 3/4 off the high and 16 1/2 up from the low. December Wheat closed up 5 1/4 at 725 1/4. This was 21 1/2 up from the low and 20 1/4 off the high. July wheat closed higher for the sixth session in a row but well off of the early peak at 722.

July KC wheat also closed sharply higher on the session and has gained as much as $1.20 1/2 off of last Monday's lows. A continued threatening weather forecast for Russia plus a hot and dry trend for Kansas for the next week or more has helped to support the solid gains.

Traders see the weekly crop updates this afternoon to show a drop of 2-3 per cent in the good to excellent ratings for the winter wheat crop from 60 per cent last week. Weekly export inspections came in at 24.89 million bushels which was right on expectations and compares with 18.3 million necessary each week to reach the USDA forecast.

Paris milling wheat pushed to the highest level since June of 2011 and this added to the positive tone. Private exporters reported a sale of 100,000 tonnes of US hard red winter wheat to Iraq for the new marketing year. July Oats closed up 2 1/2 at 342 1/2. This was 3 3/4 up from the low and 1 1/4 off the high.


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