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CME: Corn Futures Closed Lower Thursday

03 August 2012

US - September Corn finished down 6 1/2 at 794, 14 1/2 off the high and 9 3/4 up from the low. December Corn closed down 4 3/4 at 795 3/4. This was 10 1/2 up from the low and 12 1/2 off the high.

December corn traded slightly lower in the close but climbed off session lows as traders question whether or not $8 corn will ration enough demand after this year's ongoing drought.

The market continues to absorb reports of yield loss around the Corn Belt but the sharply higher US Dollar offered resistance.

Total net weekly export sales for corn, came in at 201,400 tonnes. This was near the high end of the trade's estimates.

Sales rebounded from last week's report as did ethanol production. The USDA also announced that private exporters sold 1.516 million tonnes of US corn to Mexico this morning.

Mexico is traditional importer of US corn but the purchase is being reported as the largest single-day sale of US corn in more than 20 years.

Warm and dry conditions continue to deteriorate yields across the Corn Belt leaving many traders wondering how high prices need to go to ration demand in the coming year. September Rice finished up 0.29 at 15.875, equal to the high and 0.125 up from the low.

Soybean Futures Closed Lower

August Soybeans finished down 29 1/4 at 1653, 44 off the high and 17 1/4 up from the low. November Soybeans closed down 12 1/2 at 1616 1/2. This was 21 1/2 up from the low and 29 1/4 off the high.

August Soymeal closed down 13.5 at 523.7. This was 6.4 up from the low and 19.0 off the high. August Soybean Oil finished down 0.19 at 51.54, 0.65 off the high and 0.43 up from the low.

The soybean market traded sharply lower for the third consecutive day as traders moved out of long positions and headed to the sidelines.

November soybeans bounced off early session lows but a rising US Dollar offered resistance after the ECB disappointed investors today. The weather outlook is largely unchanged from yesterday.

Scattered showers are expected in the central Midwest and eastern Corn Belt next week but accumulation could be light.

The southeastern US could also see limited rainfall. Temperatures will cool today and over the weekend but another round of above normal temperatures is expected in the southwestern Midwest next week.

The next two weeks remain very critical for soybean development and warmer and dry conditions continue to stress soybeans across the US.

Traders continue to monitor Tropical Depression 5 in the Atlantic but the forecasted track pulls the storm west towards Mexico.

Total net weekly export sales for soybeans came in at 246,400 tonnes. This was near the low end of market expectations. Soybean sales continue to run ahead of the 2011/12 USDA pace. Total net soybean meal sales came in at 270,800 tonnes.

This exceeded market expectations. The new crop sales continue to show robust demand for the meal market due tightening global supplies. Total net oil sales came in at 10,300 tonnes.

Rumors circulated around the market that Argentina may enact an export tax on soybeans but officials claimed they had no intention of doing so.

Wheat Futures Closed Lower

August Soybeans finished down 29 1/4 at 1653, 44 off the high and 17 1/4 up from the low. November Soybeans closed down 12 1/2 at 1616 1/2. This was 21 1/2 up from the low and 29 1/4 off the high. August Soymeal closed down 13.5 at 523.7.

This was 6.4 up from the low and 19.0 off the high. August Soybean Oil finished down 0.19 at 51.54, 0.65 off the high and 0.43 up from the low. The soybean market traded sharply lower for the third consecutive day as traders moved out of long positions and headed to the sidelines.

November soybeans bounced off early session lows but a rising US Dollar offered resistance after the ECB disappointed investors today.

The weather outlook is largely unchanged from yesterday. Scattered showers are expected in the central Midwest and eastern Corn Belt next week but accumulation could be light. The southeastern US could also see limited rainfall.

Temperatures will cool today and over the weekend but another round of above normal temperatures is expected in the southwestern Midwest next week.

The next two weeks remain very critical for soybean development and warmer and dry conditions continue to stress soybeans across the US. Traders continue to monitor Tropical Depression 5 in the Atlantic but the forecasted track pulls the storm west towards Mexico.

Total net weekly export sales for soybeans came in at 246,400 tonnes. This was near the low end of market expectations.

Soybean sales continue to run ahead of the 2011/12 USDA pace. Total net soybean meal sales came in at 270,800 tonnes.

This exceeded market expectations. The new crop sales continue to show robust demand for the meal market due tightening global supplies. Total net oil sales came in at 10,300 tonnes.

Rumors circulated around the market that Argentina may enact an export tax on soybeans but officials claimed they had no intention of doing so.


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